Shadowfax IPO To Open Next Week, Targets Valuation Of Rs 7,400 Crore

Logistics services provider Shadowfax is set to launch its Rs 1,900-crore initial public offering (IPO) next week, targeting a valuation of Rs 7,400 crore, people familiar with the matter said on Monday. The company is expected to announce the price band of its maiden public offering this week, they added.

People familiar with the matter told PTI that Shadowfax is targeting a post-market valuation of about Rs 7,400 crore, lower than previous estimates of Rs 8,500 crore, in what is being positioned as a more conservative pricing approach aimed at attracting long-term institutional investors.

They said the proposed IPO will comprise fresh issue of shares worth Rs 1,000 crore and an offer for sale (OFS) of Rs 900 crore by existing shareholders.

As a part of the OFS, Flipkart Internet, Eight Roads Investments Mauritius II Ltd, NewQuest Asia Fund IV (Singapore) Pte. Ltd, Nokia Growth Partners IV, L.P, International Finance Corporation, Mirae Asset ,Qualcomm Asia Pacific Pte. Ltd and Snapdeal founders -- Kunal Bahl and Rohit Kumar Bansal -- would offload shares.

The company proposes to utilise proceeds from the fresh issue towards funding enhancing capacity in terms of network infrastructure, funding of lease payments for new first mile, last mile, and sort centres, as well as towards branding, marketing, and communication initiatives, unidentified inorganic acquisitions, and general corporate purposes.

The latest move follows approval of the company's updated draft red herring prospectus (UDRHP).

Shadowfax is backed by marquee investors such as Flipkart, TPG, Eight Roads Ventures, Mirae Asset Ventures and Nokia Growth Funds. It is India's leading logistics service provider for e-commerce express parcel and value-added services. It has a service network encompassing 14,758 Indian pincodes as of September 2025.

The company serves a wide range of enterprise clients, including horizontal and non-horizontal e-commerce, quick commerce, food marketplaces, and on-demand mobility companies.

The company offers express forward parcel deliveries, reverse pickups, on-demand hyperlocal and critical logistics solutions.

For the first half of FY26, Shadowfax reported a revenue of about Rs 1,800 crore, marking a 68 per cent year-on-year increase. Its total revenue stood at Rs 2,485 crore in FY25.

The e-commerce express parcel segment is the major revenue contributor, accounting for around 70 per cent of the company's business and around 20 per cent of revenue comes from hyperlocal and quick commerce logistics.

Shadowfax's express parcel market share rose to about 21 per cent in Q1 FY26, up sharply from around 8 per cent in FY22, according to data from Redseer.

The firm filed draft papers in late June with markets regulator Sebi for an IPO through a confidential pre-filing route and had received Sebi's approval in October. Following this, companies are required to file an updated DRHP before filing an RHP.

The company opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the DRHP until later stages. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans.