Flipkart’s early investment in logistics company Shadowfax is approaching a key milestone as the firm prepares to list on stock exchanges.
Offer documents indicate that Flipkart’s holding has appreciated considerably since its initial investment.
The forthcoming ShadowfaxIPO will allow the e-commerce company to monetise part of its stake while retaining exposure to Shadowfax’s future growth.
Flipkart holds a 14.8% stake in Shadowfax, amounting to roughly 7.49 crore shares. These shares were acquired at an average cost of approximately ₹43.77 per share, placing
Flipkart’s initial investment at around ₹328 crore. This early backing positioned the company as one of Shadowfax’s key strategic investors.
At the upper end of the IPO price band, set at ₹124 per share, the value of Flipkart’s holding is estimated at about ₹929 crore.
This represents a substantial increase in the investment’s notional worth prior to listing. The IPO price band has been fixed between ₹118 and ₹124 per share, placing Shadowfax’s valuation at just over ₹7,100 crore at the top end, as per The Economic Times report.
As part of the IPO process, Flipkart plans to sell a portion of its holding worth nearly ₹400 crore through an offer for sale.
Despite this partial divestment, the company will continue to remain a shareholder in Shadowfax, enabling it to participate in potential post-listing developments, as per the news report.
The total issue size stands at ₹1,907 crore. Of this, approximately ₹1,000 crore will be raised through fresh issuance by Shadowfax, while existing shareholders will collectively offer shares worth around ₹907 crore.
The subscription window is scheduled to open on 20 January and close on 22 January, with anchor investor participation taking place a day earlier. Listing is expected on 28 January.
Several institutional investors and early backers are also reducing their holdings through the IPO.
These include Eight Roads Ventures, NewQuest Asia Fund, Nokia Growth Partners, IFC, Mirae Asset, Qualcomm Asia Pacific and the founders of Snapdeal.
Their combined share sale forms part of the offer for sale component.
Shadowfax has expanded its operations in recent years, supported by rising demand in e-commerce deliveries, quick commerce and hyperlocal logistics.
Growth in its express parcel segment has contributed to improved scale, while operating efficiencies have supported a move towards profitability. These factors have helped underpin the company’s IPO valuation.
Read More: NSE IPO: SEBI Gives In-Principle Approval to Exchange to Float IPO.
Flipkart’s investment in Shadowfax illustrates how early strategic participation in emerging logistics platforms can translate into meaningful value creation.
With a partial stake sale planned and continued shareholding post-listing, Flipkart remains positioned to benefit from Shadowfax’s next phase as a publicly listed company.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 16, 2026, 9:25 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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