Skyways Air IPO Rallies: GMP indicates 21% listing premium amid strong market interest
The Rs 582.8 crore Initial Public Offering (IPO) of Skyways Air Services has entered its third day of bidding, attracting robust investor attention. The current Grey Market Premium (GMP) points toward a significant upside, suggesting a potential premium of 21% over the upper end of the IPO price band. Investors are keen on the issue, which opened on August 25 and is slated to close on August 27.IPO Subscription Status and Investor Demand
As of Day 2, the Skyways Air Services IPO was subscribed at 2.46 times for the 2.95 crore shares on offer. Retail investors showed particularly intense demand in this segment, subscribing their allotted portion 3.54 times against the 1.48 crore shares reserved for them.The institutional interest is also high. Non-Institutional Investors (NIIs) subscribed at 2.58 times, while Qualified Institutional Buyers (QIBs) achieved a 47% subscription rate against their allocated share portion. This strong reception highlights investor confidence in the air freight and logistics sector's growth trajectory.
Financial Health and Strategic Capital Deployment
Skyways Air Services demonstrated solid financial performance in FY2026, reporting healthy expansion in both revenue and profitability. Total income rose 25% to Rs 2,839.67 crore in FY26, up from Rs 2,270.99 crore the previous year.More significantly, profit after tax (PAT) jumped 32%, reaching Rs 63.52 crore compared to Rs 48.14 crore in FY25. This faster growth in profit relative to income signals an improvement in the company’s earning power. The IPO proceeds are strategically planned for use.
The funds will be utilized to strengthen the balance sheet, with Rs 216.79 crore earmarked for the full or partial prepayment of outstanding borrowings by the company and its subsidiary, Forin Container Line Pvt. Ltd. An additional Rs 130 crore is allocated for incremental working capital requirements.
Skyways Air Services’ Market Standing
Incorporated in 1984, Skyways Air Services Limited stands as a leading player in India’s air freight forwarding and logistics industry. The company's extensive solutions portfolio covers air and ocean freight forwarding, trucking, warehousing, customs broking, and technology-driven express cargo delivery.Skyways operates as a multi-modal logistics provider, supported by cold storage facilities near Indira Gandhi International Airport for temperature-sensitive cargo. It maintains strong global connectivity through alliances like the World Cargo Alliance (WCA) and performance-based agreements with leading international airlines such as Air India Cargo and Turkish Airlines.
Investor Outlook: A Long-Term Opportunity in Logistics
Master Capital Services views the Skyways Air Services IPO within the context of a rapidly growing Indian logistics market, fueled by expanding e-commerce and rising exports. The broader Indian logistics sector is projected to reach approximately USD 357 billion by FY2026, demonstrating significant potential.Given its nearly four decades of operating experience, Skyways holds a commanding position in this sector. It boasts the No. 1 ranking in terms of Air Waybills (AWBs) generated and offers an integrated platform combining air, ocean, road, and warehousing solutions. Based on the favorable industry outlook and the company's established presence across the entire logistics value chain, investors are advised to consider the IPO a potential long-term investment opportunity.
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