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

Skyways Air Services’ Initial Public Offering (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
• Price Band: ₹131-138 per share
• Opening Date: August 24
• Closing Date: August 26
• Subscription (Opening Day): 0.42 times
• Grey Market Premium (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 PAT 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)

• Revenue grew from ₹1,289.11 crore to ₹2,812.89 crore (CAGR of 47.7%).
• EBITDA 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.