In a rocky debut for the logistics sector, Shadowfax Technologies listed at a 9% discount on the Indian stock exchanges today, Wednesday, January 28, 2026.
The stock opened at ₹112.60 on the National Stock Exchange (NSE) and ₹113.00 on the BSE, significantly below its issue price of ₹124. The weak listing confirms the cautious sentiment signaled by the grey market earlier this week.
1. Listing Day Performance
Despite the initial slump, the stock saw some recovery in early trade as investors sought value at lower levels.
| Metric | BSE Details | NSE Details |
| Issue Price | ₹124.00 | ₹124.00 |
| Listing Price | ₹113.00 | ₹112.60 |
| Listing Discount | 8.87% | 9.19% |
| Intraday High | ₹119.55 | ₹119.67 |
| Market Cap (at Open) | ₹6,510 Crore | ₹6,510 Crore |
2. Why the “Muted” Debut?
Analysts point to a combination of valuation concerns and high client concentration as the primary reasons for the discounted listing:
- Rich Valuations: At the upper price band, Shadowfax was valued at an EV/EBITDA of ~106x, which many institutional investors deemed expensive compared to peers like Delhivery.
- Client Concentration: Nearly 74% of revenue comes from the top five clients (including Meesho and Flipkart), creating a risk profile that dampened enthusiasm for long-term holding.
- Weak Non-Institutional Interest: While the overall IPO was subscribed 2.86 times, the Non-Institutional Investor (NII) portion was undersubscribed at just 0.88 times, signaling a lack of conviction from big-ticket individual traders.
3. Use of IPO Proceeds
Shadowfax raised ₹1,907 crore (₹1,000 crore in fresh issue and ₹907 crore via OFS). The fresh capital is earmarked for:
- Infrastructure: ₹423 crore for strengthening network infrastructure (first-mile, last-mile, and sort centers).
- Lease Payments: ₹138 crore to cover rental obligations for new facilities.
- Branding: ₹88 crore for marketing and communication to compete in the crowded quick-commerce and hyperlocal space.
4. Analyst Recommendations
Market experts have issued a “Wait and Watch” stance for new investors:
- For Allottees: Shivani Nyati of Swastika Investmart recommends holding with a strict stop loss at ₹105 to protect against further downside.
- For Fresh Investors: Avoid immediate entry. Price stability is expected only after a few sessions of discovery. The ₹120–₹124 range is expected to act as a strong resistance zone in the short term.
Conclusion: A Reality Check for Logistics
The Shadowfax listing serves as a reminder that even high-growth tech companies face intense scrutiny on their path to profitability. While the company’s revenue grew by 32% in FY25, its thin net profit margin and aggressive valuation led to a “discounted” welcome by Dalal Street. All eyes will now be on their Q4 FY26 results to see if the fresh capital infusion can accelerate their margin expansion.
