6 days ago
Skyways Air Services IPO Draws Strong Demand, GMP Signals Gains
Skyways Air Services is selling shares to the public in an IPO.
By Wednesday, investors had applied for more than five times the shares available.
Retail investors and non-institutional investors showed especially strong interest, while institutional investor demand was lower.
The company works in air and ocean freight, trucking, warehousing, customs and parcel delivery.
It plans to use some of the new money to repay debt and support its business.
The grey market price suggests the shares could open above the IPO price, but this is only an indication, not a guarantee.
Several brokerages liked the company’s long history and growth opportunities.
They also warned that shipping rates, global trade and competition could affect its performance.
Skyways Air Services’ IPO was subscribed 5.08 times by Wednesday, with the retail and non-institutional portions each subscribed nearly seven times.
The issue comprises a fresh issue of 2,88,98,300 shares worth ₹398.80 crore and an offer for sale of 1,33,33,300 shares worth ₹184 crore.
The price band is ₹131–₹138 per share, with proceeds intended for debt repayment, working capital and general corporate purposes.
The grey market premium was ₹42, implying a possible ₹180 listing price, or a 30.43% premium to the upper issue price.
Brokerages recommended subscribing while cautioning about trade cycles, freight-rate volatility, working-capital needs, carrier dependence and competition.
- Who
- Skyways Air Services and investors participating in its IPO; Master Capital Services, Ventura Securities and Swastika Investmart provided views.
- What
- Skyways Air Services’ IPO was subscribed 5.08 times by Wednesday, while grey-market trends indicated a possible 30.43% listing premium.
- Where
- The shares are expected to list on the BSE and NSE.
- When
- The IPO opened on Monday, 24 August, closes on Thursday, 27 August, allotment is expected on Friday, 28 August, shares may be credited on Monday, 31 August, and listing is expected on Tuesday, 1 September.
- Why
- The company is raising funds to repay some borrowings, meet incremental working-capital needs and support general corporate purposes.
Reasons to Apply
Risks to Consider
Industry growth
Reasons to Apply
Brokerages said rising exports, e-commerce, organised supply chains and demand for faster cargo movement could support India’s air-cargo and logistics sectors.
Risks to Consider
The company remains exposed to global trade cycles and freight-rate volatility, which may affect business performance.
Company strengths
Reasons to Apply
Master Capital Services highlighted Skyways Air Services’ four-decade operating history, number-one ranking in air waybills generated, integrated services and international airline alliances. Ventura cited its diversified portfolio and established customer relationships.
Risks to Consider
Ventura Securities noted dependence on third-party carriers and competition from large logistics companies as important risks.
Use of proceeds
Reasons to Apply
Swastika Investmart said allocating ₹216.79 crore of fresh proceeds toward debt reduction could lower interest costs and support margin expansion in FY27–FY28.
Risks to Consider
The business has significant working-capital requirements, and debt reduction or margin improvement is not guaranteed by the IPO alone.
Key facts
- Issue price band
- ₹131 to ₹138 per share
- Overall subscription
- 5.08 times by the end of bidding on Wednesday, 26 August
- Fresh issue
- 2,88,98,300 shares to raise ₹398.80 crore
- Offer for sale
- 1,33,33,300 shares worth ₹184 crore
- Grey market premium
- ₹42 on Thursday morning
- Implied listing price
- ₹180, representing a possible 30.43% premium over ₹138
- Qualified institutional buyers
- The QIB portion was subscribed 0.49 times by Wednesday
Quotes
Master Capital Services
Brokerage firm commenting on Skyways Air Services’ business position and growth prospects
“Skyways Air Services, with its four-decade operating history, number 1 ranking in AWBs generated, integrated air-ocean-road-warehousing- customs offering and long-standing international airline alliances, is well positioned to participate in this growth”
livemint.com
Sources
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