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Home/Business/Skyways Air Services IPO: ₹582 Cr Raise,…

Skyways Air Services IPO: ₹582 Cr Raise, Mixed Broker Views

Business
By ThePip Desk•
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A stylized cargo plane ascends, with abstract financial graphs and Rupee symbols in the background, representing Skyways Air Services IPO.

Skyways Air Services cargo plane taking off with financial graphics.

Key Highlights

Skyways Air Services IPO opens Aug 24, aiming for ₹582 Cr. Priced at ₹131-138, it garners mixed ‘Subscribe’ & ‘Neutral’ ratings from brokers. GMP at ₹32.

Skyways Air Services’ (IPO) opened on August 24, aiming to raise ₹582 crore. The air freight forwarding firm’s offering, priced at ₹131-138 per share, closes on August 26.

On its opening day, the issue was subscribed 0.42 times by 11:45 AM, primarily driven by retail investors.

Key IPO Figures

  • Targeted Raise: ₹582 crore
  • : ₹131-138 per share
  • Opening Date: August 24
  • Closing Date: August 26
  • (Opening Day): 0.42 times
  • (GMP): ₹32 (23% premium, ₹170 per share)

Brokerage Stances

Brokerage firms have offered varied opinions on the IPO, with some recommending subscription and others maintaining a neutral outlook.

  • ‘Subscribe’ Recommendations: Swastika and Ventura.
  • ‘Neutral’ Stance: SBI Securities.

Analyst Insights

Swastika highlighted Skyways Air Services’ over four decades of experience in India’s air freight forwarding and logistics sector. The firm has consistently held the No. 1 position in air freight forwarding by AWB generation for the past four calendar years.

The brokerage noted that allocating ₹216.79 crore from the fresh issue to debt reduction is expected to lower interest burdens and expand margins in FY27–FY28. Swastika sees the IPO as suitable for long-term investors interested in India’s air cargo export growth, despite thin margins of around 2.26% in FY26 and sensitivity to rate fluctuations.

Ventura emphasized the company’s asset-light logistics model, supported by freight forwarding, warehousing, and technology-enabled supply chain solutions. Key strengths include a diversified service portfolio and established customer relationships.

Financial Performance (FY24-FY26)

  • grew from ₹1,289.11 crore to ₹2,812.89 crore ( of 47.7%).
  • increased from ₹49.5 crore to ₹128.7 crore.
  • Profit After Tax (PAT) rose from ₹31.3 crore to ₹41 crore.
  • EBITDA margin improved from 3.8% to 4.6%.

SBI Securities’ Concerns

SBI Securities deemed the valuation of 31.2x FY26 earnings (at the upper price band) as reasonable compared to listed peers. However, it raised several concerns.

  • High dependence on third-party carriers.
  • Substantial borrowings of ₹624 crore as of FY26.
  • Supplier concentration.
  • Ongoing EOW investigation.

While debt repayment from IPO proceeds should strengthen the balance sheet, SBI Securities prefers to monitor post-listing performance before a definitive outlook. The company had previously raised ₹174.5 crore before the IPO.

IndiaIPOSBI SecuritiesSkyways Air ServicesSwastikaVentura