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(L-R) Praharsh Chandra, Abhishek Bansal, Gaurav Jaithliya, Vaibhav Khandelwal, cofounders, Shadowfax
Third-party logistics player Shadowfax is likely to launch its initial public offering (IPO) next week at a post-money valuation of around Rs 7,400 crore, lower than the Rs 8,500-9,000 crore it was initially targeting, multiple people in the know said.
The Bengaluru-based company has also reduced the size of its offering to Rs 1,900 crore, compared to the Rs 2,000 crore declared in its updated draft red herring prospectus (UDRHP) filed in November, one of the persons said. “The IPO will launch next week and the listing will happen later this month,” the person added.
Shadowfax is raising Rs 1,000 crore in primary capital, while the size of its offer-for-sale (OFS) component has been reduced to Rs 900 crore. The OFS portion will see investors — including Flipkart, TPG NewQuest, Eight Roads, International Finance Corporation, and Mirae Asset — offload shares during the IPO.
“The company is going for a more conservative valuation than earlier planned following its roadshows and conversations with institutional investors,” another person said. The company’s IPO valuation will be higher than the Rs 6,000 crore at which it had closed its last private round in early 2025, when it raised Rs 140 crore.
ICICI Securities, Morgan Stanley, and JM Financial are the merchant bankers for the IPO.
The Flipkart-backed company competes with new-age logistics player Delhivery, the stock price of which has dropped 17% in the last three months. On Monday, Delhivery’s market cap was nearly Rs 30,000 crore. Its stock ended trading 2.6% lower, at Rs 395.25, on the BSE.
Shadowfax did not respond to ET’s queries.
Of the net proceeds from the IPO, more than Rs 423 crore will be invested in bulking up the firm's network infrastructure. From the remaining primary capital, Rs 139 crore will be allocated to lease payments for new first and last-mile centres, and sort centres, while Rs 88.6 crore will be spent on branding and marketing, according to the company UDRHP.
Between April to September, the company has reported operational revenues of Rs 1,805 crore, up 68% from the same period last year, while its net profits have risen 114% to Rs 21 crore.
In fiscal 2025, the company’s revenue from operations rose 31% to Rs 2,485 crore from Rs 1,884 crore in FY24, and it reported a net profit of Rs 6 crore from a net loss of Rs 11.8 crore in the year prior.
As it goes public, Shadowfax joins a long list of new-age companies that have made their public debut over the last 12 months, including the likes of Lenskart, Meesho, Groww, PhysicsWallah, Urban Company, and Ather Energy.
ET had reported on January 6 that startups and tech companies are looking to raise a cumulative Rs 50,000 crore from the public markets in 2026. Besides Shadowfax, the queue includes companies such as Zepto, Oyo, PhonePe, Shiprocket, and Boat.
The Bengaluru-based company has also reduced the size of its offering to Rs 1,900 crore, compared to the Rs 2,000 crore declared in its updated draft red herring prospectus (UDRHP) filed in November, one of the persons said. “The IPO will launch next week and the listing will happen later this month,” the person added.
Shadowfax is raising Rs 1,000 crore in primary capital, while the size of its offer-for-sale (OFS) component has been reduced to Rs 900 crore. The OFS portion will see investors — including Flipkart, TPG NewQuest, Eight Roads, International Finance Corporation, and Mirae Asset — offload shares during the IPO.
“The company is going for a more conservative valuation than earlier planned following its roadshows and conversations with institutional investors,” another person said. The company’s IPO valuation will be higher than the Rs 6,000 crore at which it had closed its last private round in early 2025, when it raised Rs 140 crore.
ICICI Securities, Morgan Stanley, and JM Financial are the merchant bankers for the IPO.
The Flipkart-backed company competes with new-age logistics player Delhivery, the stock price of which has dropped 17% in the last three months. On Monday, Delhivery’s market cap was nearly Rs 30,000 crore. Its stock ended trading 2.6% lower, at Rs 395.25, on the BSE.
Shadowfax did not respond to ET’s queries.
Of the net proceeds from the IPO, more than Rs 423 crore will be invested in bulking up the firm's network infrastructure. From the remaining primary capital, Rs 139 crore will be allocated to lease payments for new first and last-mile centres, and sort centres, while Rs 88.6 crore will be spent on branding and marketing, according to the company UDRHP.
Between April to September, the company has reported operational revenues of Rs 1,805 crore, up 68% from the same period last year, while its net profits have risen 114% to Rs 21 crore.
In fiscal 2025, the company’s revenue from operations rose 31% to Rs 2,485 crore from Rs 1,884 crore in FY24, and it reported a net profit of Rs 6 crore from a net loss of Rs 11.8 crore in the year prior.
As it goes public, Shadowfax joins a long list of new-age companies that have made their public debut over the last 12 months, including the likes of Lenskart, Meesho, Groww, PhysicsWallah, Urban Company, and Ather Energy.
ET had reported on January 6 that startups and tech companies are looking to raise a cumulative Rs 50,000 crore from the public markets in 2026. Besides Shadowfax, the queue includes companies such as Zepto, Oyo, PhonePe, Shiprocket, and Boat.