Brokerages at odds over Flipkart-backed Shadowfax Technologies IPO; apply?

Shadowfax Technologies IPO: Brokerages have shared split views on the initial public offering (IPO) of logistics services provider Shadowfax Technologies, which is set to open for public subscription tomorrow, January 20, 2026, through which the Flipkart-backed company seeks to raise ₹1,907.27 crore from the markets. 

 

SBI Securities, and Swastika Investmart have assigned a Neutral rating, citing factors such as the IPO's slightly premium valuation compared to peers and the company's dependence on a few major clients, including Flipkart and Meesho. On the other hand, SMIFS has assigned a Subscribe recommendation with a multi-year investment horizon, citing Shadowfax's market leadership, technology moat, and strong positioning in the rapidly growing logistics and e-commerce delivery space in India.

 

Analysts share split views

According to the analysts at SBI Securities, at the upper price band of ₹124, Shadowfax Technologies IPO is valued at EV/Sales and EV/Ebitda multiples of 2.4x and 106.5x, respectively. Considering the low per capita shipment (3-5 in India) compared to 60-70 in the USA and 75-85 in China, the growth prospects, SBI Securities believes, appear promising.

 

“When comparing the issue with its closest peers, the IPO seems to be valued slightly at a premium. We maintain a Neutral view on the IPO and intend to observe its performance post-listing,” said SBI Securities in its report.

 

Echoing similar views, Swastika Investmart has also assigned a Neutral rating on the public offering and suggested the offering is suitable only for high-risk, long-term investors. Conservative investors, the brokerage said, should wait post-listing for better price discovery.

 

Swastika Investmart, however, highlighted that "Shadowfax benefits from strong growth in India’s last-mile logistics and e-commerce delivery space. Revenue momentum is improving, but profitability remains low and margin visibility is still evolving. At a P/S (Price-to-Sales) ratio of roughly 2.8x, the IPO is priced at a premium compared to Delhivery. A massive chunk of their revenue comes from just two sources: Flipkart (which is also an investor) and Meesho."

 

That said, SMIFS has assigned a Subscribe rating on the offering with a multi-year investment horizon. "We recommend growth-focused investors to subscribe to the issue with a multi-year investment horizon, as Shadowfax's market leadership, technology moat, and favourable industry tailwinds position the company to capture a significant share of India's ₹21-23 trillion addressable logistics market opportunity," said SMIFS in its report.

 

Early GMP trends hint at favourable sentiments

The early grey market, meanwhile, hints at favourable sentiments for the public offering. Sources tracking grey market activities revealed that the unlisted shares of Shadowfax Technologies were trading at around ₹135 per share in the unofficial markets. This translates to a grey market premium (GMP) of ₹11 or 8.87 percent over the upper band of ₹118-124.

Shadowfax Technologies IPO details

The ₹1,907 crore IPO comprises a fresh issue of 80.6 million equity shares worth ₹1,000 crore and an offer for sale (OFS) of up to 73.2 million equity shares worth up to ₹907.27 crore. Under the OFS, investors Flipkart India, Eight Roads Investments Mauritius II, International Finance Corporation, Qualcomm Asia Pacific, Nokia Growth Partners, NewQuest Asia Fund, and Miare Asset will offload a part of their stake.

 

The public offering will be available at a price band of ₹118-124 per share and a lot size of 120 shares. Thus, investors can bid for a minimum of 120 shares and in multiples thereof.

 

Taking the upper price under consideration, retail investors would require a minimum investment amount of ₹14,880 to bid for one lot of 120 shares at the upper-end price. However, ₹1,93,440 is required to bid for a maximum of 13 lots or 1,560 equity shares.

 

Kfin Technologies is serving as the registrar for the public issue, while the book running lead managers (BRLMs) include ICICI Securities, Morgan Stanley India Company, and JM Financial.

Shadowfax Technologies IPO timeline

The three-day subscription window to bid for Shadowfax Technologies IPO is likely to conclude on Thursday, January 22, 2026. Following that, the basis of allotment of shares is expected to get finalised on Friday, January 23, 2026. The successful allottees can expect the company's shares to be credited into their demat account tentatively by Tuesday, January 27, 2026.

 

Shadowfax Technologies shares are slated to make their debut on the exchanges, NSE and BSE, on Wednesday, January 23, 2026.

 

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Shadowfax Technologies IPO objective

According to the RHP, the company will not receive any proceeds from the OFS. "Our Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of the Offer Proceeds, to the extent of the Equity Shares offered by them in the Offer, net of their respective share of the Offer-related expenses. Accordingly, the Offer for Sale will not form a part of the Net Proceeds," said Shadowfax Technologies in its RHP.

 

Shadowfax Technologies, however, plans to utilize proceeds from the fresh issue for network expansion capex for infrastructure and logistics facilities, lease payments for first-mile, last-mile, and sorting centers. The company will further deploy the proceeds for branding, marketing & strategic growth, including acquisitions and general corporate purposes.

 

About Shadowfax Technologies

Shadowfax Technologies Ltd is a logistics solution provider company in India. The company services a wide range of enterprise clients including e-commerce, quick commerce, food marketplace and on-demand mobility companies. Clientele includes marquee companies such as Meesho, Flipkart, Myntra, Swiggy, Bigbasket, Zepto, Blinkit, Zomato, Uber, ONDC, Magicpin, amongst others.