Skyways Air Services ₹583 Crore IPO Opens August 24, Price Band Fixed At ₹131-138 Per Share

Skyways Air Services, an air freight and logistics company, has announced its Rs 583 crore initial public offering (IPO) set to launch on August 24. The company intends to utilize the fresh funds raised to repay existing debt and strengthen working capital. The IPO will remain open until August 27, with anchor investor bidding commencing on August 21. The shares are anticipated to be listed on stock exchanges on September 1.

The IPO price band has been set between Rs 131 and Rs 138 per share. At the lower end of the band, the company's valuation is projected to be Rs 1,904 crore. At the upper end, the valuation could reach Rs 2,006 crore, with an estimated issue size of Rs 553 crore at the lower price and Rs 583 crore at the upper price.

The IPO comprises a fresh issuance of 2.89 crore equity shares and an offer for sale of 1.33 crore shares by existing shareholders. Funds from the fresh share issue will primarily be used to settle the company's borrowings, while some proceeds will address working capital needs. The residual amount will be allocated for general corporate purposes. Funds from the offer for sale will be directed towards the selling shareholders and not the company itself.

Muthoot Fincorp has filed a DRHP (Depositary Receipt Housing Plan) for a ₹3,000 crore IPO, aiming to bolster its Tier-I capital and fuel lending and business expansion. Skyways Air Services, established in 1984, initially operated as a customs broker, later expanding into various facets of freight movement and logistics. Its services now encompass air freight forwarding, ocean freight forwarding, trucking, warehousing, and technology-driven express cargo and parcel delivery. The books for the issue are managed by Holani Consultants, Shanon Advisors, and Dolat Finserv.