New Delhi: Air freight and logistics company Skyways Air Services will open its Rs 583 crore initial public offering on August 24. The company plans to use fresh funds to repay debt and meet working capital needs.
The IPO will close on August 27, while bidding for anchor investors is set for August 21. The company’s shares are expected to be listed on the stock exchanges on September 1.
Price Band
Skyways Air Services has fixed the IPO price band at Rs 131 to Rs 138 per share. At the lower end, the company will be valued at Rs 1,904 crore. Its valuation will rise to Rs 2,006 crore at the upper end.
The issue size is estimated at Rs 553 crore at the lower price and Rs 583 crore at the upper price.
The IPO includes a fresh issue of 2.89 crore equity shares. It also includes an offer for sale of 1.33 crore shares by shareholders.
Use Of Funds
Money received from the fresh share issue will be used to repay the company’s borrowings. Some proceeds will support working capital requirements.
The remaining amount will be used for general corporate purposes. Money from the offer for sale will go to the selling shareholders and not to the company.
Investor Quota
The company has reserved 50 per cent of the IPO for qualified institutional buyers. Non-institutional investors will receive 15 per cent, while retail investors will be able to bid for 35 per cent of the issue.
Company Operations
Skyways Air Services was established in 1984 and began operations as a Custom House Agent, now known as a customs broker licence holder.
Over the years, it has expanded into several areas of freight movement and logistics. Its services now include air freight forwarding, ocean freight forwarding, trucking and warehousing.
The company provides technology-based express cargo and parcel delivery services.
Holani Consultants, Shanon Advisors and Dolat Finserv are the book-running lead managers for the issue.
