Flipkart to double money on Shadowfax investment and pocket Rs 600 crore profit from IPO

Flipkart will more than double its money on its early bet in Shadowfax as the logistics company heads to the stock market next week. According to the offer document, Flipkart has a 14.8% stake in Shadowfax, which translates to around 7.49 crore shares. The e-commerce giant acquired these shares at an average price of around Rs 43.77 each. This takes Flipkart’s initial investment to around Rs 328 crore.At the top end of the IPO price band of Rs 124 per share, Flipkart’s share value rises sharply to around Rs 929 crore. This means that the investment has grown in value almost three times on paper, yielding a profit of over Rs 600 crore before any dilution from the for-sale offering.

Flipkart will partially monetize this investment through the IPO. As part of the sale offer, it is selling shares worth around Rs 400 crore. Even after this partial exit, the company will remain a shareholder in Shadowfax, allowing it to benefit from a future upside IPO.

Shadowfax has set its IPO price range at Rs 118 to Rs 124 per share, valuing the company at just over Rs 7,100 crore at the higher 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. The shares are expected to go public on January 28.

Shadowfax has scaled rapidly in recent years, thanks to the growth of online shopping, high-speed commerce, and hyper-local deliveries. This growth has helped early backers see substantial appreciation for their investments, despite the company opting for a more conservative valuation compared to previous market expectations.

Besides Flipkart, several other well-known investors are also selling part of their shares 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 around 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 attracted bids of Rs 1.1 lakh crore and what investors can expect from a listing? Shadowfax’s recent financial performance has also helped support its valuation. The company reported strong revenue growth in the first half of FY26, mainly driven by its e-commerce express parcel business and rising demand from quick commerce customers. Improved scale and operational efficiency have helped the company become profitable, a key factor that investors in the public markets typically reward.

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