Skyways Air Services IPO draws fivefold bids with grey market signaling 30 percent premium
The Indian air freight forwarder’s initial public offering has attracted strong retail and non-institutional demand, signaling robust investor appetite for logistics plays despite cautious institutional participation.
The initial public offering of Skyways Air Services has secured a 5.08-fold subscription by the end of its third day of bidding. The book-building process for the Indian air freight forwarder is scheduled to conclude on Thursday.
The company is raising ₹398.80 crore through a fresh issue of 2,88,98,300 shares, alongside an offer for sale of 1,33,33,300 shares valued at ₹184 crore. The issue price band is fixed between ₹131 and ₹138 per share.
Retail and non-institutional investors drove the early momentum, with both categories subscribing nearly seven times over their respective allocations. Qualified institutional buyers remained notably cautious, booking only 0.49 times of their reserved portion by Wednesday.
Grey market indicators point to a strong market debut, with the premium standing at ₹42 on Thursday morning. This suggests a potential listing price of ₹180, representing a 30.43 percent premium over the upper price band when trading commences on 1 September.
Management intends to deploy the fresh capital to reduce existing borrowings, fund incremental working capital needs, and support general corporate purposes. Brokerage Swastika Investmart noted that allocating ₹216.79 crore toward debt reduction will directly lower interest burdens and drive margin expansion in FY27–FY28.
Brokerage Views and Risks
Analysts largely view the listing as a strategic entry point into India’s rapidly expanding logistics sector. Master Capital Services highlighted the company’s four-decade operating history and integrated service offerings as key advantages in a market buoyed by rising exports and e-commerce growth.
Ventura Securities echoed the subscribe recommendation, citing a diversified service portfolio and established customer relationships. However, the firm cautioned that the business model carries inherent vulnerabilities for prospective shareholders.
Key risks include exposure to global trade cycles, freight-rate volatility, and a heavy dependence on third-party carriers. Furthermore, intensifying competition from larger, more capitalized logistics players remains a structural headwind for the company.
