Shadowfax IPO Listing: Stock Debuts at 9% Discount After Weak GMP Signals

Listing Overview

Shadowfax Technologies listed on the NSE and BSE on January 28, 2026, at 10 AM, debuting at a nearly 9% discount to its issue price, bringing a subdued close to one of the most closely tracked logistics IPOs of the year.

The issue was priced at the upper band of ₹124 per share, but listing sentiment has weakened sharply heading into debut.

As of January 25, the grey market premium (GMP) stood at around ₹4 per share, cooling from ₹10–₹11, seen earlier in the subscription phase. This shift signals an expected listing around ₹120, translating into a 3–4% discount to the issue price.

While Shadowfax’s long-term growth narrative remains intact, supported by scale, improving profitability, and exposure to quick commerce, the near-term listing outlook appears cautious, reflecting valuation sensitivity and selective institutional participation.

Shadowfax IPO Summary

Particulars	Details
IPO Open / Close	January 20 – 22, 2026
Price Band	₹118 – ₹124
Issue Size	₹1,907 crore
Fresh Issue	₹1,000 crore
Offer for Sale (OFS)	₹907 crore
Lot Size	120 shares
Registrar	KFin Technologies
Listing Date	January 28, 2026
Issue Type	Fresh + OFS

The IPO structure balances growth capital infusion via the fresh issue with partial exits by existing investors through the OFS.

Subscription Snapshot

Category	Subscription (×)
QIB	3.81×
NII	0.84×
Retail	2.31×
Employee	2.07×
Total	~2.72×

Subscription momentum remained muted in the early days, with Day-2 coverage around 60%.

The book was ultimately supported by a late QIB surge on Day-3, helping the issue cross full subscription, though non-institutional demand remained soft.

This uneven participation profile is reflected in the cooling GMP and conservative listing expectations.

Anchor Investors

Shadowfax raised ₹856 crore from anchor investors at ₹124 per share (6.9 crore shares).

Key participants included:

• Domestic MFs (≈53%): ICICI Prudential MF, Nippon India MF, Motilal Oswal MF
• Global institutions: Bank of America Securities, Morgan Stanley Asia
• Sovereign exposure: Government Pension Fund Global

Anchor participation provided credibility to the issue, though the allocation skew toward domestic funds suggests measured global risk appetite.

About Shadowfax

Founded in 2015 by IIT-Delhi alumni Abhishek Bansal and Vaibhav Khandelwal, Shadowfax operates a B2B, asset-light, AI-driven logistics platform focused on last-mile delivery.

The company serves:

• E-commerce: Flipkart, Meesho
• Quick commerce: Zepto, Blinkit
• D2C and enterprise clients

Scale & Reach (FY25)

• 14,758 pin codes
• 4,299 touchpoints
• 436 million orders delivered
• 200,000+ delivery partners
• 53 sort centres

Order volumes have grown at a ~30% CAGR since FY23, positioning Shadowfax as a key beneficiary of India’s expanding quick-commerce and D2C ecosystems.

Financial Highlights (₹ crore)

Metric	FY23	FY24	FY25
Revenue	1,415	1,885	2,485
Net Profit / (Loss)	(143)	(12)	6.4

Shadowfax turned profitable in FY25, marking a sharp turnaround from earlier losses

EBITDA has remained positive post-FY24, supported by operating leverage and scale efficiencies

The profitability inflection is real, but margins remain thin, making execution discipline critical.

Valuation & Listing Outlook

At the issue price of ₹124, Shadowfax is valued at approximately ₹7,169 crore, translating to:

• P/S of ~2.2× (FY25)
• P/E above 1,000×, inflated due to recently achieved profitability

By comparison:

• Delhivery trades near ~3.2× P/S
• Traditional peers like Blue Dart command higher margins but slower growth

While Shadowfax’s growth trajectory and quick-commerce exposure justify investor interest, valuation comfort was limited, particularly amid a soft GMP environment.

As a result, the stock is expected to list flat to mildly negative, with early price discovery likely driven by institutional flows rather than retail momentum.

Key Risks to Watch

• Client Concentration: Top client contributes ~48% of revenue; top- 5 ~75%
• Thin Margins: Operating margins below 2% leave little room for shocks
• Competitive Pressure: Delhivery, Ecom Express, and regional players
• Regulatory Exposure: Gig-worker rules and compliance costs
• E-commerce Cyclicality: Demand linked closely to consumption trends

Use of IPO Proceeds

From the ₹1,000 crore fresh issue:

• ₹423 crore for network expansion & automation
• ₹139 crore toward lease payments
• ₹89 crore for brand building and customer acquisition
• Balance for acquisitions and general corporate purposes

Management has emphasised growth without sacrificing profitability, citing operating leverage as a core strategy.

Sahi’s Review

Neutral Listing | Long-Term Story Intact

Shadowfax enters the public market at a delicate intersection of scale and valuation.

While fundamentals have improved meaningfully, profitability, strong order growth, and quick-commerce exposure, the negative GMP and uneven subscription signal a cautious listing.

• Short-term traders: Avoid positioning purely for short-term gains
• Long-term investors: May track post-listing price stability for gradual accumulation

Shadowfax’s journey will ultimately be judged not by Day-1 performance, but by its ability to expand margins while sustaining growth in India’s high-velocity logistics ecosystem.