Shadowfax IPO Listing: Negative GMP, Allotment Status & Should You Hold?

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

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

Subscription Snapshot

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)

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.