Skyways Air Services made its debut on the Indian stock exchanges on Tuesday, with the shares listing below the issue price despite the company’s initial public offering (IPO) receiving strong demand from investors across categories.
The shares opened at ₹124 apiece on the NSE, a 10.14% discount to the IPO price of ₹138. On the BSE, the stock opened at ₹124.50, representing a 9.78% discount to the issue price. The listing was significantly below grey market expectations, with the reported GMP of ₹32 ahead of the debut indicating an implied price of around ₹170.
The subdued listing, however, came against an exceptionally strong subscription response during the IPO. The ₹582.80-crore issue was subscribed 71.25 times between August 24 and 27, with the qualified institutional buyer (QIB) portion subscribed 139.69 times. The non-institutional investor category was subscribed 87.24 times, while the retail portion saw 25.40 times subscription.
The issue comprised a fresh issue of 2.89 crore shares aggregating to ₹398.80 crore and an offer for sale of 1.33 crore shares worth ₹184 crore. A significant portion of the fresh capital is intended to strengthen the company’s balance sheet, with ₹216.79 crore earmarked for repayment or pre-payment of borrowings and ₹130 crore for incremental working capital requirements.
For Skyways, the listing marks the next phase in the growth of a logistics business that has operated for more than four decades. The company operates across air and ocean freight forwarding, trucking, warehousing, customs broking and technology-enabled express and e-commerce logistics services. It has also highlighted its international business, customer diversification and technology capabilities as key growth drivers.
Speaking to the media ahead of the IPO, Skyways Air Services Chairman and Managing Director Yashpal Sharma said the company had built a broad customer base and technology-led logistics proposition. “We have over 9,500 customers today,” Sharma said, highlighting the company’s focus on serving both large corporates and MSMEs.
Sharma also said debt reduction would be a key use of the IPO proceeds, with deleveraging expected to provide greater financial flexibility as the company pursues future growth opportunities.
While the first-day listing performance has been subdued, the 71.25-times subscription, particularly the strong institutional participation, provides a significant data point on investor interest in Skyways’ business and the broader logistics growth opportunity. The company’s performance as a listed entity will now depend on its ability to convert that growth opportunity into sustained revenue, profitability and balance-sheet improvement.
