Archive · 28 Aug 2026
Skyways IPO Faces Fraud Probe and Regulatory Risks
Skyways Air Services is preparing to list its shares after conducting a large IPO.
The shares were offered at prices between Rs 131 and Rs 138.
An unofficial market signal suggested the shares could list about 33% higher, but this is not guaranteed.
The company and its subsidiary Brace Port Logistics are being investigated by Delhi’s Economic Offences Wing.
The investigation followed a complaint from PG Paper Company.
PG Paper says the companies used inflated freight bills and other improper methods.
It estimates its direct loss at at least Rs 44.20 crore.
Skyways’ special customs-trade certificate has also been suspended.
The company has sent a response to regulators, but the matter is still pending.
Skyways Air Services’ Rs 582.8 crore IPO has a price band of Rs 131-138 per share.
The IPO includes up to 2.89 crore fresh shares and an offer-for-sale of up to 1.33 crore shares.
Its grey market premium rose about 33% on the final bidding day, but GMP is unofficial and does not guarantee listing returns.
Skyways and subsidiary Brace Port Logistics face an EOW investigation over allegations including fraud, over-invoicing, forgery and conspiracy.
PG Paper alleges losses of at least Rs 44.20 crore, while Skyways’ AEO-LO certificate remains suspended pending regulatory action.
- Who
- Skyways Air Services Limited, its subsidiary Brace Port Logistics Limited, PG Paper Company Limited, the Economic Offences Wing and the Central Board of Indirect Taxes and Customs are involved.
- What
- Skyways is preparing for its stock-market listing while disclosing an EOW investigation and regulatory action in its Red Herring Prospectus.
- When
- The FIR was registered on December 12, 2025; the CBIC notice was issued on May 14, 2026; Skyways’ AEO-LO status was suspended from May 4, 2026; and the RHP was filed on August 11, 2026.
- Where
- The FIR was registered by the Economic Offences Wing in Delhi, following a complaint by UK-based PG Paper Company Limited.
- Why
- The investigation concerns allegations of inflated freight invoices, fraud, bribery, forgery, misrepresentation and criminal conspiracy; the customs authorization was suspended pending the investigation.
Complainant and Regulatory Concerns
Company Disclosures and Pending Proceedings
Alleged over-invoicing and fraud
Complainant and Regulatory Concerns
PG Paper alleges that Skyways group entities coordinated to inflate freight invoices, bypassed internal checks through inducements and caused approximately Rs 44.20 crore in direct losses. It also alleges that some charges were 40% to 300% above prevailing market rates.
Company Disclosures and Pending Proceedings
The allegations remain part of an ongoing criminal investigation and have not been established as proven facts in the articles. Skyways disclosed the proceedings in its RHP and did not comment on media queries.
Customs authorization
Complainant and Regulatory Concerns
CBIC issued a notice for suspension and proposed revocation of Skyways’ AEO-LO certificate, and the status has remained suspended since May 4, 2026.
Company Disclosures and Pending Proceedings
Skyways submitted its response to the competent authority on July 28, 2026, and the regulatory matter remains pending.
IPO investment outlook
Complainant and Regulatory Concerns
The EOW investigation, alleged financial losses and possible regulatory consequences represent risks investors may consider before the listing.
Company Disclosures and Pending Proceedings
The IPO recorded an unofficial grey market premium of about 33% on the final bidding day, although GMP can change and does not guarantee the actual listing price or investor returns.
- IPO size
- Rs 582.8 crore
- IPO price band
- Rs 131-138 per equity share
- Fresh issue
- Up to 2.89 crore equity shares
- Offer-for-sale
- Up to 1.33 crore shares by existing shareholders
- Grey market premium
- About 33% on the final bidding day; unofficial and not a guarantee of returns
- Alleged direct loss
- At least Rs 44.20 crore, according to PG Paper’s allegations
- Regulatory status
- Skyways’ AEO-LO certificate has been suspended since May 4, 2026; proposed revocation remains pending
