Skyways Air Services' initial public offering (IPO) witnessed robust demand, being subscribed 2.46 times by the end of Day 2. Retail investors led the charge, with their portion oversubscribed 3.54 times against the 1.48 crore shares reserved for them. The IPO, priced between Rs 131 and Rs 138 per share, aims to raise Rs 582.8 crore, comprising a fresh issue and an offer for sale.
The IPO includes a fresh issue of 2.89 crore shares worth Rs 398.8 crore and an offer for sale of 1.33 crore shares aggregating Rs 184 crore. Non-Institutional Investors (NIIs) subscribed 2.58 times their reserved shares, while Qualified Institutional Buyers (QIBs) subscribed to 47% of their allocation. The IPO allotment is expected to be finalized on August 28, 2026, with shares listed on NSE and BSE on September 1, 2026.
Skyways Air Services raised Rs 174.5 crore from anchor investors before the IPO launch, indicating strong institutional interest. The funds raised will be used to repay or prepay certain borrowings, meet working capital requirements, and for general corporate purposes. The company plans to use Rs 216.79 crore for debt repayment and Rs 130 crore for working capital.
Skyways Air Services reported a 25% increase in total income to Rs 2,839.67 crore in FY2026, with profit after tax rising 32% to Rs 63.52 crore. The company, established in 1984, is a leading player in India's air freight and logistics sector, offering a range of services including air and ocean freight forwarding, warehousing, and customs broking.
The Indian logistics industry is experiencing significant growth, driven by factors such as rising exports, e-commerce expansion, and government infrastructure initiatives. Skyways Air Services, with its extensive experience and strong market position, is well-placed to capitalize on these trends.
Background
The Indian logistics industry has been expanding rapidly, supported by industrialization, urbanization, and the growth of e-commerce. This sector was valued at approximately USD 215 billion in 2021 and is projected to grow at a CAGR of 10.7% to reach around USD 357 billion by FY2026.
Looking ahead, investors should consider the favorable industry outlook and Skyways Air Services' established presence in the logistics sector. The company's strategic initiatives and strong financial performance make it a potential long-term investment opportunity.
