Shadowfax Technologies IPO subscription Day 3: The public offering of logistics services company Shadowfax Technologies Ltd saw a 60% subscription by the second day of bidding on Wednesday, January 22.
Based in Bengaluru, Shadowfax Technologies, a provider of logistics solutions, began its public subscription on January 20 and is set to close on January 22, with Shadowfax IPO price band set at ₹118-124 each. On January 19, the day before the Shadowfax Technologies IPO opened for public subscriptions, Shadowfax IPO raised ₹856.02 crore from 39 anchor investors.
Shadowfax Technologies IPO allotment is set to be finalized on Friday, January 23. The company plans to begin processing refunds on Tuesday, January 27, and shares for those who are allotted will be credited to their demat accounts later that same day after the refunds have been completed. Shares of Shadowfax Technologies are anticipated to be listed on the BSE and NSE on Wednesday, January 28.
The firm focuses on fast parcel delivery services tailored for the e-commerce sector and other related services. They provide e-commerce and direct-to-consumer shipping, as well as hyperlocal and quick commerce solutions that are delivered within hours or on the same day, along with SMS notifications and personal courier services available through the Shadowfax Flash app.
Shadowfax Technologies IPO GMP today
Shadowfax IPO GMP today or grey market premium is ₹1.5. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Shadowfax Technologies share price was indicated at ₹125.5 apiece, which is 1.21% higher than the IPO price of ₹124.
Based on the grey market activities from the last 10 sessions, the present GMP ( ₹1.5) suggests a decreasing trend. The lowest GMP noted is ₹0.00, while the highest GMP reached is ₹16, according to expert evaluations.
‘Grey market premium‘ indicates investors’ readiness to pay more than the issue price.
Shadowfax Technologies IPO details
The company plans to raise ₹1,907.3 crore through an IPO, which consists of ₹1,000 crore from new shares and ₹907.3 crore from existing investors selling their shares.
From the total amount raised, the firm aims to allocate ₹423.4 crore toward enhancing its network infrastructure, while ₹138.6 crore is earmarked for the leasing of new first mile centers, last mile centers, and sorting facilities. Moreover, ₹88.5 crore will be set aside for branding, marketing, and communication expenses, with the remaining funds directed towards acquisitions and general corporate functions.
The shareholders participating in the offer-for-sale include Flipkart Internet, Eight Roads Investments Mauritius, International Finance Corporation, Qualcomm Asia Pacific, Nokia Growth Partners, NewQuest Asia Fund, and Mirae Asset. Among the main shareholders of Shadowfax, Flipkart Internet, Eight Roads Investments Mauritius, and NewQuest Asia Fund possess stakes of 14.83%, 14.15%, and 14.08%, respectively.
The founders and promoters of the company, Abhishek Bansal and Vaibhav Khandelwal, own 10.76% and 8.37% of the logistics platform’s shares, respectively. ICICI Securities, Morgan Stanley India Company, and JM Financial are serving as the lead book-running managers for the Shadowfax IPO, while Kfin Technologies Ltd. will act as the registrar for the offering.
Shadowfax Technologies IPO review
Swastika Investmart highlighted that Shadowfax is set to gain from substantial growth in India’s last-mile logistics and e-commerce delivery markets. Although revenue is increasing, profitability remains low, and margin clarity is still unfolding.
With a Price-to-Sales (P/S) ratio of approximately 2.8x, the IPO is regarded as being priced at a premium in comparison to Delhivery. The brokerage pointed out that a significant portion of their revenue comes from just two clients: Flipkart, which is also an investor, and Meesho. This investment is appropriate only for high-risk, long-term investors; conservative investors might want to wait until post-listing for a clearer price evaluation.
SMIFS noted that the company’s wide array of services, which encompasses forward parcel delivery, reverse pickups, hand-in-hand exchanges, prime delivery, and hyperlocal fulfillment, creates considerable switching costs and potential to boost wallet share with major clients like Flipkart, Meesho, Zepto, and Swiggy.
The brokerage believes that ongoing initiatives to expand the network (with a goal of more than 2,160 new delivery centers by FY27), improve profit margins through operational efficiencies, and capitalize on high-margin sectors such as BFSI and cross-border logistics could result in significant value creation in the medium to long term.
Cholamandalam Securities stated that in the future, the company aims to offer additional value-added services to its clients, with reverse pickups and hand-in-hand exchanges being intricate operations that demand rigorous monitoring and quality assessments. The brokerage has given a ‘SUBSCRIBE’ recommendation for the IPO of Shadowfax Technologies Ltd, anticipating listing profits.
According to Sushil Finance, the offering is set at a price-to-book value (P/BV) of 9.21, calculated from its net asset value (NAV) of ₹13.46 as of the first half of FY26, and if FY25 earnings are annualized, the asking price translates to a price-to-earnings ratio (P/E) of approximately 160x.
As per the brokerage, the listed prospectus indicates that the average P/E in the industry stands around 123x. The business is currently in a phase characterized by high leverage and growth, where its financial situation has shown improvement, although profitability continues to be affected by operational performance. The pricing appears to be aggressive.
Considering all aspects, including risks, opportunities, and valuation, investors who can tolerate high risk may consider investing for the long term.
Shadowfax Technologies IPO subscription status
Shadowfax IPO subscription status is 2.70x on day 3, so far. The retail portion is subscribed 2.23 times, and NII portion has been booked 83%, Qualified Institutional Buyers (QIBs) portion received 3.81x bids. The employee portion has been reserved 1.99 times bids.
The company has received bids for 24,07,91,640 shares against 8,90,88,807 shares on offer, at 16:06 IST, according to data on BSE.
Shadowfax IPO subscription status was 47% on day 1, and the issue was booked 60% on day 2.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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