Skyways Air Services files draft papers with SEBI for IPO

Delhi-based air freight forwarding and logistics company Skyways Air Services Ltd. has filed its draft red herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The IPO, with a face value of ₹10 each, is a mix of fresh issue of up to 3.292 crore equity shares and an offer for sale up to 1.333 crore equity shares by promoters and other selling shareholders.

Un the OFS, shareholders selling shares include 71.2 lakh equity shares by Yashpal Sharma, 24.6 lakh by Tarun Sharma, 18.7 lakh equity shares by Himanshu Chhabra and 18.7 lakh equity shares by Rohit Sehgal.

The proceeds from its fresh issuance to the extent of Rs 216.79 crore will go towards for repayment or pre-payment of certain outstanding borrowings availed by the company and its subsidiary “Forin Container Line Private Limited”; Rs 130 crore for funding incremental working capital requirements of the Company; and general corporate purposes.

The company, in consultation with the book-running lead managers, may consider a pre-IPO placement aggregating to 62.5 lakh equity shares. The pre-IPO placement, if undertaken, will not exceed 20% of the size of the fresh issue.

If such placement is completed, the fresh issue size will be reduced.

Nearly 50% of the net offer will be available for allocation on a proportionate basis to qualified institutional buyers, 15% and 35% of the net offer to non-institutional bidders, and retail individual bidders, respectively.

Skyways Air Services Ltd. (SASL) was established in the year 1984 that began its operations as a Custom House Agent (CHA), now known as a Custom Broker License holder, and has expanded its service offerings over the years in response to evolving market requirements and international trade dynamics beyond air freight forwarding and custom broking service, evolving into a multi-modal logistics service provider.

The company's portfolio includes air freight forwarding, ocean freight forwarding, trucking, comprehensive warehousing solutions, technology driven express cargo and parcel delivery service and continued excellence in customs broking services, thereby offering an integrated logistics platform for a diverse range of clients.

Skyways Air Services' revenue from operations and profit after tax for the fiscal 2024 stood at ₹1,289.11 crore and ₹34.49 crore, respectively.

For the nine-month period ended December 31, 2024, revenue from operations, and profit after tax stood at ₹1,637.22 crore, and ₹36.84 crore, respectively.

Holani Consultants, Shannon Advisors and Dolat Finserv are the book-running lead managers and Bigshare Services is the registrar of the offer.

The equity shares are proposed to be listed on BSE and NSE.