Skyways Air Services IPO day 4: Issue subscribed over 26 times; GMP signals 33% listing pop; should you apply or not?

Skyways Air Services IPO day 4: The initial public offering (IPO) of Skyways Air Services, an air freight forwarding company, is witnessing decent buying interest. The book-build issue, which opened on Monday, 24 August, and is to conclude on Thursday, 27 August, had an overall subscription of over 26 times by the end of bidding on Wednesday, 26 August.

The Skyways Air Services IPO is a combination of a fresh issue of 2,88,98,300 shares to raise ₹398.80 crore and an offer for sale (OFS) of 1,33,33,300 shares for ₹184 crore. The issue price band has been fixed at ₹131 to ₹138 per share.

The company intends to use the net proceeds from the fresh issue of shares to pay some borrowings, to fund incremental working capital requirements, and for general corporate purposes.

Skyways Air Services provides services in the air freight forwarding and logistics sector, including air freight forwarding, ocean freight forwarding, trucking, warehousing, custom broking, technology-driven express cargo and parcel delivery and several value-added services to its clientele across domestic and international markets.

Meanwhile, grey market trends also signal optimism about the stock, as the latest grey market premium (GMP) of Skyways Air Services suggests the stock could list at a healthy premium on the BSE and the NSE on Tuesday, 1 September. Share allotment is expected to be finalised on Friday, 28 August. Successful bidders can get the shares credited into their demat accounts on Monday, 31 August.

Skyways Air Services IPO subscription status

Till 2:25 PM on Thursday, the issue had been subscribed to 26.17 times, with the retail portion booked nearly 20 times, and the segment reserved for non-institutional investors (NIIs) subscribed nearly 61 times. The qualified institutional buyers' (QIBs) segment was booked 11.5 times till Wednesday.

Skyways Air Services IPO GMP

Skyways Air Services IPO GMP on Thursday afternoon was ₹46, showing the possibility of the stock listing at ₹184, a premium of 33% over the issue price of ₹138.

Skyways Air Services IPO: Should you apply?

Brokerages largely appear positive about the issue, highlighting the bright growth prospects of the company.

Master Capital Services says investors may consider the IPO as a potential long-term investment opportunity.

The brokerage firm underscored the high growth potential of India's air cargo and logistics sector, which is benefiting from rising exports, e-commerce growth, expanding organised supply chains and increasing demand for faster, more reliable cargo movement.

"Skyways Air Services, with its four-decade operating history, number 1 ranking in AWBs generated, integrated air-ocean-road-warehousing- customs offering and long-standing international airline alliances, is well positioned to participate in this growth," said Master Capital Services.

Ventura Securities also has a subscribe recommendation on the issue, citing the company's key strengths include a diversified service portfolio, long operating history and established customer relationships.

However, exposure to global trade cycles, freight-rate volatility, working capital requirements, dependence on third-party carriers, and competition from large logistics players remain key risks, said Ventura.

Swastika Investmart, too, has a subscribe view on the issue, as it pointed out that allocating ₹216.79 crore of fresh proceeds toward debt reduction will directly lower interest burdens, driving margin expansion in FY27–FY28.

"The issue primarily for long-term investors looking to play the structural expansion of Indian air cargo exports and supply-chain infrastructure," said Swastika.

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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.