India logistics technology startup Shadowfax’s much-anticipated stock market debut turned disappointing, with the shares opening below the IPO price and falling further by the end of the trading session. The tech-driven delivery platform listed its shares at about ₹113, around 9% lower than the ₹124 issue price, and ended its first day of trade at almost ₹109, translating into a loss of about 12% for IPO investors. The muted debut reduced the company’s market capitalisation to around ₹6,300 crore, lower than the valuation hinted at the time of the public issue.
Shadowfax’s initial public offering, which raised ₹1,907 crore, had generated moderate interest during the subscription period but failed to convert that demand into listing-day momentum. The issue was subscribed to 2.72 times overall, reflecting selective interest rather than very strong demand from investors. This came in at a time when India has had some of the biggest IPOs in 2025, many of them coming in from tech-first startups.
Meanwhile, qualified institutional buyers emerged as the strongest supporters as is usually the case, subscribing close to four times their allotted portion, while retail investors subscribed to their category a little over twice. In contrast, the non-institutional investor segment showed weaker participation, with subscriptions remaining below full capacity, indicating caution among high-net-worth investors.
Notably, the IPO structure comprised a fresh issue of shares worth around ₹1,000 crore and an offer for sale of about ₹907 crore by existing shareholders. The offer for sale saw partial exits by several prominent early investors and stakeholders, including Flipkart Internet, Eight Roads Ventures, NewQuest Asia Fund, International Finance Corporation, Mirae Asset, Qualcomm Asia Pacific, and Snapdeal co-founders Kunal Bahl and Rohit Bansal.
Even some of the company’s early investors are set to make substantial gains, with Flipkart expected to earn nearly three times returns by selling shares worth about ₹237 crore through the OFS, while Eight Roads Investments could see around ten times returns on shares worth ₹197 crore. While these sales enabled early backers to monetise a portion of their holdings, they also added to supply pressure around the listing.
Shadowfax operates a technology-led logistics platform that caters to e-commerce marketplaces, direct-to-consumer brands, and hyperlocal businesses. The company has positioned itself as a critical player in last-mile and reverse logistics, an area that has seen rapid growth along with the expansion of online commerce in India. While Shadowfax has scaled its operations and delivery footprint over the years, the business continues to operate in a capital-intensive environment, where cost control and margin improvement remain major challenges.
And now, funds raised through the fresh issue are intended to support Shadowfax’s next phase of growth. The company plans to deploy capital toward expanding its logistics and delivery infrastructure, investing in additional sorting centres, strengthening its last-mile and first-mile delivery network, meeting lease-related obligations, and boosting brand visibility. A portion of the proceeds is also reserved for potential inorganic growth opportunities and general corporate purposes, as the company looks to deepen its presence in the country’s highly competitive logistics market.
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