Shadowfax is targeting a large amount for IPO. The overall amount of the issue will total to ₹2,000 crore. The offer has been tactfully divided into two components. A Fresh Issue of equity shares to the amount of ₹1,000 crore. The capital will directly be deposited into the company to be utilized in its operations and expansion. Offer of Sale (OFS) of equity shares of a maximum amount of ₹1,000 crore. The selling shareholders will receive the proceeds of the OFS component.

IPO structure and utilization of capital

The issue price of the equity share is ₹10 per equity share. In order to address this major social concern, the company has engaged three major price agents Book Running Lead Managers, namely ICICI Securities Limited, Morgan Stanley India Company Private Limited, and JM Financial Limited. The move to start an IPO of such magnitude highlights the ambition of Shadowfax to cement its infrastructure and to take a bigger market share in the booming logistics market.

The net amount of proceeds generated on the fresh issue portion of the IPO is directed to several strategic projects that are meant to finance the future developments and infrastructures of the company. A significant part of the capital would be used to finance capital expenditure needs on the intensive network infrastructure of Shadowfax.

The funds will be used to finance lease payments on a variety of new facilities that would be necessary to scale up the business: namely, new first-mile, last-mile, and sort centres. This intended growth of the physical infrastructure is essential in ensuring smooth operations as the volume of orders increases nationwide.

Shadowfax will, in addition, invest a lot of money in strengthening its market share. Money is used on branding, marketing, and communication. Part of the capital will be allocated to unknown inorganic acquisitions, which will give the firm the financial flexibility to unify or multiply its skills by acquiring strategic companies. The balance will be used for general corporate purposes.

Business model and operational success

Shadowfax is considered to be the fastest-growing new-age, technology-based third-party logistics (3PL) company of scale in India as of March 31, 2025. The large reach of the company can also be seen in the large number of service points that the company has, covering 14,758 pin codes in India as of September 30, 2025.

The business model of Shadowfax serves a portfolio of different enterprise clients, spanning across different high-growth departments. E-commerce is used on horizontal and non-horizontal platforms. Rapid Business and Food Stores, and on-demand Mobility Firms.

The company provides a full range of logistics solutions, such as express forward parcel deliveries, reverse pickups, on-demand hyperlocal, and critical logistics solutions, making it a full-stack logistics provider to the digital economy.

The success of the operations that the company is engaged in can be seen in its order volumes, which keep growing. During the Financial Year 2025 (FY25), Shadowfax was able to handle 436.36 million orders. This is a healthy Compound Annual Growth rate (CAGR) of 29.77% since FY23.

The pace gathered momentum moving towards the first half of the current fiscal year. During the six months ended September 30, 2025, the company had processed 294.45 million orders, reflecting an astounding CAGR of 50.11% as compared to the six months ended September 30, 2024.

Strong growth has also been shown by the company. Operational revenues of Shadowfax in FY25 amounted to ₹2,485.13 crore, and its adjusted EBITDA margin was 1.96%. This financial growth was extended into the first half of FY26 (six months ended September 30, 2025), in which the revenue of the company in its operations stood at ₹1,805.64 crore, and its adjusted EBITDA margin increased to 2.86%.

Conclusion

The move of Shadowfax to launch a ₹2,000 crore Indian premium IPO, half of which would be a fresh issue and the other half an Offer for Sale, is a bold step, indicating that the company is confident in the soaring Indian e-commerce logistics market. The company intends to use the new capital to finance the key infrastructure expansion, such as new facilities and strategic acquisitions, backed by a high-growth trajectory, which is reflected in processing more than 436 million orders in FY25 and ongoing margin improvements. The Shadowfax IPO will power its next stage of growth with its proven technology-based 3PL model, and a large network that encompasses more than 14,700 pin codes and enables it to take a commanding lead on digital commerce in India.