Shadowfax Technologies IPO Day 2: Subscription Status, GMP at 3%

Shadowfax Technologies IPO has entered Day 2 of subscription today, January 21. The public issue will remain open until January 22, with a price band fixed at Rs 118–124 per share.

Shadowfax Technologies IPO: Important Details

• Price Band: Rs 118–124 per share
• IPO Dates: January 20–23
• Grey Market Premium (GMP): Around 3%
• Allotment Date: January 23
• Listing Date: January 28 on BSE and NSE

Issue Structure

The Rs 1,907.27 crore IPO is a combination of a fresh issue and an offer for sale (OFS).

• The company aims to raise Rs 1,000 crore through fresh equity.
• Existing shareholders will offload 7.32 crore shares worth Rs 907 crore via OFS.

Use of IPO Proceeds

Funds raised through the fresh issue will be primarily used to strengthen operations:

• Rs 423 crore allocated for capital expenditure, including first-mile, last-mile, and sorting centres
• Rs 138 crore for lease payments on infrastructure
• Rs 88 crore earmarked for branding and marketing initiatives

ICICI Securities is the book-running lead manager, while KFin Technologies is the registrar to the issue.

Growth Strategy

Shadowfax Technologies plans to expand its market share by deepening customer relationships and improving operational efficiency. The company is also focusing on expanding service offerings, including express B2B parcel services for time-sensitive inter-city and intra-city deliveries.

Payment-Related Risk

A significant portion of orders are cash-on-delivery (35% as of H1 FY26). Shadowfax collects cash on behalf of clients and transfers it later, which exposes the company to handling and settlement risks.

Key Business Risks

The company is highly dependent on a single large client, which contributed nearly half of its revenue in FY26 and H1 FY26.

Shadowfax Technologies relies on a crowd-sourced delivery partner network without exclusive contracts. Any disruption, strikes, or supply issues among delivery partners could impact operations.