The ₹1,907-crore initial public offering (IPO) of Flipkart-backed logistics firm Shadowfax Technologies closed with an overall subscription of 2.86 times, as strong demand from institutional investors offset muted interest from non-institutional buyers. The tepid response from certain investor segments weighed on sentiment in the unlisted market, with the grey market premium (GMP) dropping to zero.

The IPO, priced in the range of ₹118-124 per share, received bids for 24.25 crore shares against 8.47 crore shares on offer, translating into an application amount of about ₹3,007 crore. The issue attracted 2.25 lakh applications, according to data from Chittorgarh.com.

The qualified institutional buyers (QIB) portion was subscribed 4 times, while the retail investors’ segment was booked 2.43 times. In contrast, the non-institutional investors (NII) category remained undersubscribed at 0.88 times. The employee portion saw a subscription of 2.17 times.

The IPO had a lot size of 120 shares, with the minimum investment for retail investors pegged at ₹14,880 at the upper end of the price band.

Following the closure of the issue, Shadowfax’s GMP slipped to zero, implying a flat listing at ₹124, in line with the issue price. Market participants attributed the weak grey market sentiment to heightened volatility in the secondary market, with the Sensex and Nifty down over 3% so far in January, amid sustained foreign investor selling and escalating geopolitical tensions.

With the issue now closed, all eyes are on the allotment, which is expected to be finalised today. Shares are likely to be credited to successful applicants by the end of January 23, while the stock is scheduled to list on the BSE and the NSE on January 28, 2026.

Investors can check their allotment status on the websites of the BSE, the NSE, or Kfin Technologies, the registrar to the issue.

The Shadowfax IPO comprised a fresh issue of 8.06 crore equity shares worth ₹1,000 crore and an offer for sale (OFS) of 7.32 crore shares, aggregating to around ₹907 crore, by existing shareholders.

The company plans to utilise the net proceeds from the fresh issue primarily to strengthen its network infrastructure. Of the total, around ₹423 crore will be deployed towards capital expenditure for logistics infrastructure, while ₹139 crore will be used to fund lease payments for new first-mile, last-mile and sortation centres. An additional ₹89 crore has been earmarked for branding, marketing and communication, with the remaining funds allocated towards inorganic acquisitions and general corporate purposes.

Founded in June 2016, Shadowfax Technologies is a logistics solutions provider offering e-commerce express parcel delivery and a range of value-added services. Its portfolio spans e-commerce and direct-to-consumer (D2C) deliveries, hyperlocal and quick-commerce logistics, as well as SMS and personal courier services through its Flash app.

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