Shadowfax Files Updated DRHP For INR 2,000 Cr IPO

SUMMARY

The company’s public offering will comprise a fresh issue of equity shares worth up to INR 1,000 Cr and an OFS component of up to INR 1,000 Cr

Flipkart will offload shares worth up to INR 237 Cr, Eight Roads Ventures will sell shares worth up to INR 197 Cr, while TPG Inc will offload shares worth up to INR 150 Cr

The company intends to utilise the fresh proceeds for capital expenditure requirements, lease payments and for branding, marketing and communication

Logistics major ShadowFax has filed its updated draft red herring prospectus (UDRHP) with SEBI for its IPO of up to INR 2,000 Cr ($225.3 Mn).

The company’s public offering will comprise a fresh issue of equity shares worth up to INR 1,000 Cr and an offer-for-sale (OFS) component of up to INR 1,000 Cr.

Among the selling shareholders, Flipkart will offload shares worth up to INR 237 Cr. Eight Roads Ventures will sell shares worth up to INR 197 Cr, while TPG Inc will offload shares worth up to INR 150 Cr via NewQuest Asia Fund IV. Nokia Growth Partners will offload shares worth up to INR 100.8 Cr, alongside a few others.

The company intends to utilise INR 423.4 Cr from the fresh proceeds for capital expenditure requirements for its network infrastructure, INR 138.6 Cr for lease payments for new first mile centres, last mile centres and sort centers, and INR 88.6 Cr for branding, marketing and communication. The remaining amount will be used for inorganic acquisitions and general corporate purposes.

Among the cofounders, Abhishek Bansal holds approximately 10.76% stake in the company and Vaibhav Khandelwal holds 8.37% stake. Flipkart Internet holds the highest stake in the company at 14.84%, as per the UDRHP.

Shadowfax may consider a pre-IPO placement prior to the filing of the RHP. If undertaken, the pre-IPO funding will not exceed 20% of the fresh issue size.

This comes days after SEBI gave its nod for Shadowfax’s public issue. The company pre-filed its DRHP in July.

Founded in 2015, Shadowfax offers last-mile delivery services to ecommerce platforms and D2C brands. It also provides value-added services including reverse logistics, parcel exchange, and quick delivery options. It counts the likes of Mamaearth, Nykaa, Flipkart, and Meesho among its clients.

The company’s nationwide logistics infrastructure, as of September 30, comprised 4,299 touchpoints, distributed across first and last mile centres and sort centers. It claims to serve 14,758 pin codes across the country.

Earlier this year, the Bengaluru-based company acquired CriticaLog India to further expand its offerings. Following that, Shadowfax raised INR 34.24 Cr in its Series F funding round from Mirae Asset and Nokia Growth Partners in February.

On the financial front, Shadowfax’s net profit increased more than 2X to INR 21 Cr in H1 FY26 from INR 9.8 Cr in the year-ago period. Operating revenue zoomed 68.4% to INR 1,805.6 Cr during the period under review from INR 1,072.1 Cr in H1 FY25.

In FY25, the company posted a net profit of INR 6.4 Cr as against a net loss of INR 11.9 Cr in the previous fiscal year. Operating revenue rose 32% to INR 2,485.1 Cr from INR 1,884.8 Cr in FY24.