The actor's father is a veteran star who made his directorial debut with Mausam last year.
Shahid told One India: "It is really great to watch my dad in such an entertaining role after a long time.
"It's an enjoyable film and two people who are very important to me are associated with it, my dad and Vishal Bhardwaj. I wish them the best for the film."
Matru Ki Bijlee Ka Mandola star Imran Khan has described Pankaj Kapoor as "challenging" to work with on set.
In 2012, Shahid criticised the Bollywood trend of copying the "older generation" of actors by making masala films.
Watch the trailer for Matru Ki Bijlee Ka Mandola below: