The initial public offering of Skyways Air Services was subscribed 1.54 times by the second day, driven by strong retail interest. Investors are evaluating the firm's plans to use the ₹582.8 crore proceeds to pay down debt, while keeping a close eye on the company's thin profit margins.
The initial public offering (IPO) of Skyways Air Services, an air freight forwarding company, is seeing steady traction among investors. By the second day of bidding on August 25, 2026, the issue was subscribed 1.54 times, with a total of 45.68 million shares bid against the 29.58 million shares on offer.
Retail investors have shown the most interest so far, with their reserved portion subscribed 2.26 times. The public issue, which opened on August 24 and closes on August 27, has a price band set between ₹131 and ₹138 per share. The total IPO size stands at ₹582.8 crore, split into a fresh issue of shares and an offer for sale by existing shareholders.
Why Investors Are Looking at the Debt
A primary reason for this IPO is the company's need to clean up its balance sheet. Skyways Air Services plans to use ₹216.79 crore of the proceeds to repay outstanding debt. Additionally, the company intends to use ₹130 crore for its day-to-day working capital needs. With high debt levels reported in the fiscal year ended March 2026, this debt reduction is a key factor that investors are weighing against the company's future growth potential.
Financials and Business Risks
For the financial year ended March 2026, the company reported a net profit of ₹63.5 crore on revenue of ₹2,812.9 crore. While these figures show growth, it is important for investors to note that the net profit margin remains thin, at approximately 2.26 percent. This suggests that even small changes in operating costs or global freight rates could significantly impact the bottom line.
Furthermore, the air freight sector is highly sensitive to geopolitical shifts and volatility in global trade. As a freight forwarder, Skyways does not own the aircraft, meaning it relies on third-party airlines and international shipping partners for cargo space. This reliance on external partners means the company has less control over supply chain disruptions, which is a risk factor for shareholders to consider.
Anchor Investor Participation
Before opening to the public, the company raised ₹174.5 crore from anchor investors, including large institutional names like Nomura Singapore and Citigroup Global Markets. Several domestic mutual funds also participated in this round, providing a degree of confidence in the offering price of ₹138 per share.
The final subscription status and the interest from various investor categories, such as institutional buyers, will be the next major updates to track as the IPO window closes on August 27.