Shadowfax secures Rs 856 cr from anchor investors; IPO to open on Jan 20

Logistics services provider Shadowfax on Monday said it has collected Rs 856 crore from anchor investors, a day before the opening of its initial share sale for public subscription.

The anchor book attracted participation from a wide range of domestic and global investors, including mutual funds, insurance companies, pension funds and foreign institutions.

The top investors in the anchor round include Nippon India Mutual Fund (MF), ICICI Prudential MF, JM Financial MF, Motilal Oswal MF, Government Pension Fund Global, ICICI Prudential Life Insurance Company, Societe Generale, HSBC Global Investment Funds, Eastspring Investments and Jupiter India Fund, according to a circular uploaded on BSE's website.

The company allocated 6.90 crore equity shares to anchor investors at a price of Rs 124 per share, which is also the upper end of the IPO price band. This takes the total fundraising to Rs 856 crore, the circular noted.

Of the total shares allotted to anchor investors, around 3.68 crore shares, or 53.24 per cent, were allocated to nine domestic mutual funds through 20 schemes, reflecting strong institutional interest ahead of the public issue.

Shadowfax's Rs 1,907-crore maiden public offering will be available for subscription from January 20 to 22. The price band has been fixed at Rs 118-124 apiece for its upcoming IPO, valuing the company at over Rs 7,100 crore at the higher end.

The IPO will comprise a fresh issue of shares worth Rs 1,000 crore and an offer for sale (OFS) of Rs 907.27 crore by existing shareholders. This takes the total issue size to Rs 1,907.27 crore.

As a part of the OFS, Flipkart Internet, Eight Roads Investments Mauritius II Ltd, NewQuest Asia Fund IV (Singapore) Pte Ltd, Nokia Growth Partners IV, LP, International Finance Corporation, Mirae Asset, Qualcomm Asia Pacific Pte Ltd, and Snapdeal founders -- Kunal Bahl and Rohit Kumar Bansal -- would offload shares.

Market experts said Shadowfax has reduced its post-market valuation to over Rs 7,100 crore, lower than previous estimates of Rs 8,500 crore, in what is being positioned as a more conservative pricing approach aimed at attracting long-term institutional investors.

The company proposes to utilise proceeds from the fresh issue towards enhancing capacity in terms of network infrastructure, funding of lease payments for new first-mile and last-mile, and sort centres, as well as towards branding, marketing, and communication initiatives, unidentified inorganic acquisitions, and general corporate purposes.

Shadowfax is backed by marquee investors such as Flipkart, TPG, Eight Roads Ventures, Mirae Asset Ventures and Nokia Growth Funds. It is India's leading logistics service provider for e-commerce express parcel and value-added services. It has a service network encompassing 14,758 Indian pin codes as of September 2025.

The company serves a wide range of enterprise clients, including horizontal and non-horizontal e-commerce, quick commerce, food marketplaces, and on-demand mobility companies. It offers express forward parcel deliveries, reverse pickups, and on-demand hyperlocal and critical logistics solutions.

Shares of Shadowfax are expected to list on January 28 on the bourses.

The company said that 75 per cent of the issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

For the first half of FY26, Shadowfax reported a revenue of about Rs 1,800 crore, marking a 68 per cent year-on-year increase. Its total revenue stood at Rs 2,485 crore in FY25.

The e-commerce express parcel segment is the major revenue contributor, accounting for around 70 per cent of the company's business and around 20 per cent of revenue comes from hyperlocal and quick commerce logistics.

Shadowfax's express parcel market share rose to about 21 per cent in Q1 FY26, up sharply from around 8 per cent in FY22, according to data from Redseer.

The firm filed draft papers in late June with the markets regulator Sebi for an IPO through a confidential pre-filing route and had received Sebi's approval in October.

The company opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the DRHP until later stages. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)