The logistics sector is kicking off the IPO season with a bang. Shadowfax, the Flipkart-backed supply chain unicorn, has fixed its price band at ₹118 to ₹124 per share for its upcoming public issue.
The total issue size is pegged at ₹1,907.2 crore, consisting of a fresh issue of ₹1,000 crore and an Offer for Sale (OFS) worth ₹907.3 crore. The bidding for anchor investors opens on January 19, with the main issue opening on January 20.
IPO Intelligence
From Red to Black
The timing of the IPO is strategic. Shadowfax has managed to turn its financials around just in time for the public listing. The company reported a net profit of ₹6.4 crore for FY25, a sharp recovery from a loss of ₹11.8 crore in the previous fiscal year.
Revenue growth remains robust at 32% YoY, reaching ₹2,485 crore, driven by the ecommerce boom and its hyperlocal delivery network.
Use of Proceeds
The ₹1,000 crore raised from the fresh issue will be reinvested into the core business. Key areas of deployment include strengthening network infrastructure, expanding first- and last-mile centers across Tier-2 and Tier-3 cities, and funding branding and marketing initiatives to compete with rivals like Delhivery and Xpressbees.
"The IPO sees stakes sold by investors including Flipkart, Eight Roads, Qualcomm, IFC, and Mirae Asset Global Investments."
FounderStory Takeaway
Shadowfax's IPO is a test case for the "new-age profitable" narrative. Unlike the cash-burning IPOs of 2021, 2026 is demanding profitability. Shadowfax fits the bill. With Flipkart as a backer and a customer, it has stability, but its ability to scale its third-party logistics (3PL) business will determine its long-term stock performance.