Skyways Air Services' ₹583 Cr IPO To Open On Aug 24; Price Band Fixed At ₹131-138

Air freight forwarding and logistics company Skyways Air Services Ltd will launch its ₹583 crore Initial Public Offering (IPO) on August 24 as the company looks to strengthen its balance sheet and reduce debt.

The price band has been fixed at ₹131-138 per share, valuing the company at ₹1,904 crore at the lower end and ₹2,006 crore at the upper end.

The IPO comprises a fresh issue of 2.89 crore equity shares and an Offer For Sale (OFS) of 1.33 crore equity shares. The issue size is estimated at ₹553 crore at the lower end and ₹583 crore at the upper end of the price band.

The initial share sale will conclude on August 27 and the anchor investor bidding will take place on August 21, according to a public announcement on Friday.

Proceeds from fresh issuance will be used for debt payment, funding incremental working capital requirements of the company; and general corporate purposes.

Skyways Air Services Ltd (SASL) was established in the year 1984 that began its operations as a Custom House Agent (CHA), now known as a Custom Broker License holder, and has expanded its service offerings over the years.

The company's portfolio includes air freight forwarding, ocean freight forwarding, trucking, comprehensive warehousing solutions, technology-driven express cargo and parcel delivery service.

The company has reserved 50%of the issue for Qualified Institutional Buyers (QIBs), 15%for Non-Institutional Investors (NIIs) and 35%for retail investors.

The shares are proposed to be listed on the stock exchanges on or about September 1. Holani Consultants, Shanon Advisors and Dolat Finserv are the book-running lead managers to the issue.