At the upper end of the IPO price band of Rs 124 per share, the value of Flipkart’s stake rises sharply to about Rs 929 crore. This means the investment has grown by nearly three times in value on paper, delivering a gain of over Rs 600 crore before any dilution from the offer for sale.
Flipkart will partly cash out this investment through the IPO. As part of the offer for sale, it is selling shares worth about Rs 400 crore. Even after this partial exit, the company will continue to remain a shareholder in Shadowfax, allowing it to benefit from any future upside post listing.
Shadowfax has fixed its IPO price band at Rs 118 to Rs 124 per share, valuing the company at a little over Rs 7,100 crore at the top end. The Rs 1,907 crore issue will open for subscription on January 20 and close on January 22, with anchor investors bidding a day earlier. Shares are expected to list on the stock exchanges on January 28.
Shadowfax has scaled rapidly over the past few years, riding the growth in online shopping, quick commerce, and hyperlocal deliveries. This growth has helped early backers see substantial appreciation in their holdings despite the company opting for a more conservative valuation compared with earlier market expectations.
Apart from Flipkart, several other well-known investors are also selling part of their holdings in the IPO, including Eight Roads Ventures, NewQuest Asia Fund, Nokia Growth Partners, IFC, Mirae Asset, Qualcomm Asia Pacific and Snapdeal founders Kunal Bahl and Rohit Bansal. Together, these shareholders are offering shares worth about Rs 907 crore, while the remaining Rs 1,000 crore will come from a fresh issue of shares by the company.
Bharat Coking Coal IPO: Why a small PSU drew Rs 1.1 lakh crore bids and what investors should expect from listing?Shadowfax’s recent financial performance has also helped support the valuation. The company reported strong revenue growth in the first half of FY26, driven mainly by its e-commerce express parcel business and rising demand from quick commerce clients. Improved scale and operating efficiency have helped it move into profitability, a key factor that investors tend to reward in the public markets.
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