Skyways Air Services receives SEBI’s nod for IPO
Proceeds will repay ₹216.78 crore in borrowings, allocate ₹130 crore for working capital, and fund general corporate purposes.;
(From left) Yashpal Sharma (MD) and Tarun Sharma (Director)
Skyways Air Services, a Delhi-based air freight forwarding and logistics company, has received the Securities and Exchange Board of India (SEBI) nod for an Initial Public Offering (IPO). The fresh issue component will consist of 3.29 crore equity shares with a face value of ₹10 each. Concurrently, the offer for sale (OFS) will see existing shareholders, including the promoters, offload 1.33 crore shares.
According to the press release, the company has submitted its Draft Red Herring Prospectus (DRHP) SEBI on June 30 this year. The IPO is structured as a combination of a fresh issue of equity shares and an OFS by existing shareholders.
The proceeds from the fresh issue have been specifically earmarked for strategic financial goals at ₹216.78 crore is allocated for the repayment or pre-payment of certain outstanding borrowings availed by the company and its subsidiary, Forin Container Line.
This aims to deleverage the company's balance sheet, also ₹130 crore is set aside for funding the incremental working capital requirements of the company, supporting its operational expansion. The remaining funds will be utilised for general corporate purposes.
The company's recent financial performance shows a slight moderation in both revenue and profit. Skyways Air Services reported a revenue of ₹1,316.81 crore in the fiscal year 2024, down from ₹1,496.11 crore in 2023. Profit after tax (PAT) followed a similar trend, coming in at ₹34.49 crore in 2024, compared to ₹37.90 crore in the preceding year.
In June in an Interview with Indian Transport & logistic News the Yashpal Sharma, Chairman and MD, Skyways Group said, “We’ve done the growth so far through the profit of the organisation and through the debt route, we feel that next step is equity.”
He further added that by going public the company can reach out to the bigger player, “ We are able to evaluate and create a reach for a far bigger audience. .. We need to create branding positioning in front of little ecommerce and logistic players.”
The proposed listing on the stock exchanges will allow Skyways Air Services to enhance its brand visibility and provide liquidity to its shareholders as it executes its strategy of debt reduction and operational expansion.
Yashpal Sharma gave more insights of the company, watch the entire video