India’s leading air freight forwarder, Skyways Air Services (SASL), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The public offering will comprise both a fresh issue and an offer for sale (OFS), aiming to unlock shareholder value while supporting its strategic growth initiatives.
With over four decades of operational legacy, SASL has matured into a multi-modal logistics powerhouse. The company was ranked No. 1 in India for air freight forwarding by World ACD for three consecutive years (2022–2024), in terms of AWB (Air Waybill) issuance — a testament to its dominant footprint in the export logistics ecosystem.
Skyways Air Services IPO: Snapshot
According to the company’s draft papers, the total offer comprises up to 4.62 crore equity shares of face value INR 10 each, with the split as follows:
- Fresh Issue: Up to 3.29 crore equity shares
- Offer for Sale (OFS): Up to 1.33 crore equity shares
The Offer for Sale includes divestments by promoters Yashpal Sharma (up to 71.2 lakh shares) and Tarun Sharma (up to 24.6 lakh shares), alongside shares by non-promoter shareholders Himanshu Chhabra and Rohit Sehgal.
The company may also consider a pre-IPO placement of up to 62.5 lakh equity shares, which could reduce the size of the fresh issue accordingly.
Utilisation of Proceeds
The net proceeds from the fresh issue will be deployed as follows:
- INR 216.79 crore for repayment/prepayment of borrowings by SASL and its subsidiary Forin Container Line.
- INR 130.00 crore for meeting incremental working capital requirements
- Remaining funds will be utilised for general corporate purposes.
Corporate & Operational Overview
Founded in 1984, SASL began as a customs broker and has since evolved into an integrated logistics solutions provider with operations spanning:
- Air & Ocean Freight Forwarding
- Express Cargo & Parcel Delivery
- Warehousing
- Customs Broking
- Value-Added Services (VAS)
The company operates through 15 branch offices in India and maintains a global presence in 10 countries, including subsidiaries in Germany, UAE, Hong Kong, UK, Vietnam, and Saudi Arabia (pending capital contribution). A total of 27 entities make up its corporate structure, including key subsidiaries like Phantom Road Express, Skart Global Express, and sGate Tech Solutions.
Technology as a Differentiator
Skyways has heavily invested in proprietary technology platforms to boost supply chain visibility and efficiency. Noteworthy platforms include:
- SLS HIKE – A complete logistics management system with real-time tracking and workflow automation.
- SLS 100X – A smart booking engine offering competitive freight quotes and bookings.
- Theo – An internal digital assistant used by over 400 employees.
The firm also employs Microsoft Power BI dashboards, OCR, RPA, and machine learning, illustrating a strong commitment to digital transformation in logistics.
Financial Performance
Skyways has demonstrated resilient financial performance despite volatility in global trade flows:
| Metric | FY22 | FY23 | FY24 | 9M FY25 (Dec) |
|---|---|---|---|---|
| Revenue from Operations | 1,658.56 | 1,484.12 | 1,289.11 | 1,637.22 |
| PAT | 46.04 | 37.90 | 34.49 | 36.84 |
| EBITDA Margin | 4.13% | 3.96% | 3.75% | 3.90% |
| RoE | 55.53% | 31.35% | 22.37% | 18.62% |
| EPS | 9.18 | 6.98 | 5.99 | 5.84 |
Skyways’ drop in operational cash flows in FY24 and 9M FY25 suggests increased working capital intensity and ongoing infrastructure investments. However, strong RoE and asset turnover indicate a high-efficiency operating model.
Clientele and Market Segments
The firm services over 7,600 clients, with deep penetration in:
- Textiles & Apparel (13.5% revenue share)
- Spare Parts
- Pharmaceuticals
- FMCG
- Automotive & Electronics
It maintains strong B2B relationships with logistics giants like FedEx Trade Networks, Weldforce, and Allied Cargo Services. Additionally, Skyways aggregates smaller air freight volumes on behalf of sub-agents, enabling cost-effective consolidation and margin optimisation.
Promoters at the Helm
- Mr. Yashpal Sharma, CMD, brings over 30 years of industry experience and is a former President of Air Cargo Forum India. He is credited with institutionalising the group’s pan-India and international expansion.
- Mr. Tarun Sharma, Whole-Time Director, spearheaded the company’s ocean freight business, scaling it across India and third-country corridors.
Together, they held a combined 82% stake pre-offer, which will dilute post-IPO depending on the final share pricing.
Skyways Air Services is affiliated with prestigious global freight networks like WCA, CLN, AOP, MGLN, and TWIG, connecting with over 26,000 logistics partners worldwide.
Conclusion
Skyways Air Services enters the market with scale, global connectivity, digital infrastructure and diversification. The company has a confident management team, a well structured group of subsidiaries and a forward-looking business model aligned to India’s growing logistics and export ecosystem.
However, investors should also keep an eye on the increasing working capital intensity, dependence on air freight and global economic factors that impact trade volumes.
With India’s logistics sector set to transform through digitisation and global trade realignments, Skyways Air Services IPO could be a good opportunity for long-term growth investors.
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