Mumbai, January 2026: Shadowfax Technologies, a logistics and last-mile delivery firm backed by Flipkart, made a muted debut on Indian stock exchanges on Wednesday, with its shares listing below the IPO issue price.
The company’s stock debuted at around ₹112–113 on both the NSE and BSE, nearly 9% lower than the IPO’s upper price band of ₹124. Shadowfax had raised approximately ₹1,907 crore through its initial public offering, which was open for subscription between January 20 and January 22.
IPO Subscription Overview
Shadowfax’s IPO witnessed moderate overall investor demand. Exchange data showed that Qualified Institutional Buyers (QIBs) led subscriptions with 3.8x demand, followed by retail investors at 2.3x and the employee quota at 2x. In contrast, Non-Institutional Investors (NIIs) subscribed to only 0.84x of their allotted portion, indicating cautious sentiment among high-net-worth investors.
The public issue comprised a fresh issue of around ₹1,000 crore and an offer-for-sale (OFS) of approximately ₹907 crore.
Early Investors See Partial Exits
Through the OFS, several early backers partially exited their holdings. Flipkart is expected to generate nearly three times returns by selling shares worth about ₹237 crore, while Eight Roads Investments, a Fidelity affiliate, is likely to realise around 10X returns on shares valued at roughly ₹197 crore.
Ahead of the IPO, Shadowfax had also raised ₹850 crore from anchor investors, allotting 6.9 crore equity shares at ₹124 per share.
Business Model and Competitive Landscape
Founded in 2015, Shadowfax operates in the last-mile and hyperlocal logistics segment, serving ecommerce marketplaces, D2C brands, and quick commerce players. The company competes with established players such as Delhivery, XpressBees, Ecom Express, and Ekart in a market characterised by high competition and capital-intensive operations.
According to data from TheKredible, Shadowfax has raised approximately $246 million in funding to date. Eight Roads Ventures is the largest external shareholder, followed by Flipkart, NewQuest Asia, and Nokia Growth Partners.
Financial Performance
Despite a cautious market debut, Shadowfax has shown strong financial improvement in recent years. The company reported 32% year-on-year growth in revenue to ₹2,485 crore in FY25, along with a net profit of ₹6.4 crore.
For the first half of FY26, Shadowfax posted ₹1,806 crore in revenue and ₹21 crore in profit, reflecting improved operating leverage and cost discipline.
Analysis: Why Did Shadowfax List at a Discount?
Shadowfax’s subdued listing reflects broader investor caution toward logistics IPOs, especially in a sector known for thin margins, intense competition, and high capital requirements.
While the company’s transition to profitability and strong revenue growth are positive signals, investors appear to be factoring in:
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Ongoing price pressure in last-mile logistics
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Heavy dependence on ecommerce and quick commerce volumes
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Comparisons with listed peers like Delhivery, which have faced volatile post-listing performance
The weak NII participation during the IPO also suggested limited short-term speculative interest, contributing to the softer listing.
However, Shadowfax’s improving profitability, diversified client base, and scale across hyperlocal and ecommerce deliveries could support long-term value creation, provided the company sustains margins and avoids excessive cash burn.
For long-term investors, the stock’s debut discount may offer an entry point—but sustained performance will likely depend on execution discipline, market consolidation, and profitability consistency in India’s competitive logistics ecosystem.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape.