Skyways Air Services IPO opens with 0.90x subscription on day 1

Skyways Air Services Limited’s initial public offering opened on Monday with muted institutional demand, as the three-day subscription window began with overall bidding at 0.90 times the total shares on offer by mid-afternoon on the first day.

As of 3.03 PM on August 24, the IPO had received bids for 2,67,21,000 shares against 2,95,83,600 on offer. Retail Individual Investors (RIIs) led subscriptions, bidding 1.29 times their reserved portion with 1,91,60,800 shares bid against 1,48,00,000 offered.

The Non-Institutional Investor (NII) category stood at 0.62 times, while Qualified Institutional Buyers (QIBs) trailed significantly at just 0.43 times their allotted quota of 84,32,000 shares.

The IPO, priced at a band of ₹131–138 per share, aims to raise ₹583 crore at the upper price band. Of this, ₹399 crore constitutes a fresh issue and ₹184 crore an offer for sale. Net proceeds from the fresh issue will be directed primarily towards debt repayment of ₹216.8 crore and working capital needs of ₹130 crore.

Prior to opening, the company had already secured anchor investor commitments of 1,26,48,000 shares at ₹138 per share, amounting to approximately ₹174.5 crore, from 17 investors including Bank of India Mutual Fund, Taurus Mutual Fund, IndusInd General Insurance, Nomura Singapore, and Pranitya India Opportunities Fund.

SBI Securities assigned a Neutral rating. The brokerage noted that while the company delivered Revenue/EBITDA/PAT CAGR of 47.7 per cent/61.8 per cent/35.8 per cent respectively during FY24–FY26, profitability remains modest with a PAT margin of just 2.3 per cent in FY26.

At the upper price band, the issue is valued at 31.2x FY26 earnings on post-issue capital. The brokerage flagged an ongoing Economic Offences Wing (EOW) investigation, elevated borrowings of ₹624 crore, and high supplier concentration as key risks warranting caution.

Two days of bidding remain, with the IPO closing on August 26.

Published on August 24, 2026