Yashpal Sharma plans IPO for Skyways Air Services
Skyways reported revenue from operations of Rs 1,637cr for nine months ended Dec 31, 2024 with net profit of Rs 36.83cr.;
(From left): Yashpal Sharma and Tarun Sharma.
Skyways Air Services, a 40-year legacy Indian air cargo services company, is planning an initial public offering (IPO) of 4.62 crore shares with a face value of Rs 10 each.
The company, promoted by Yashpal Sharma and Tarun Sharma, reported revenue from operations of Rs 1,637 crore for the nine months ended December 31, 2024 with a net profit of Rs 36.83 crore. For the year ended March 31, 2024 revenue from operations was Rs 1,484 crore with net profit of Rs 34.49 crore.
The issue includes fresh issue of 3.29 crore shares and offer for sale of 1.33 crore shares. While Yashpal Sharma will be selling 71.2 lakh shares in the IPO, Tarun Sharma will sell 24.6 lakh shares. Other major selling shareholders include Himanshu Chhabra (18.66 lakh shares) and Rohit Sehgal (18.86 lakh shares), according to the draft red herring prospectus (DRHP) filed with the Securities Exchange Board of India (Sebi).
The purpose of the issue is to repay/pre-pay outstanding borrowings of around Rs 217 crore and fund incremental working capital of Rs 130 crore.
The number of customers served (meaning the total of unique and active customers of skyways air services limited at a consolidated level) was 7,612 with air cargo volume coming in at 44,003 tonnes for the first nine months of FY2025. For the full year of 2023-24, Skyways had handled 48,013 tonnes of air cargo with revenue per tonne at Rs 2.13 lakh, down 24 percent from the previous year.
Among the risk factors, Skyways says: "There are limited air carriers in the air cargo industry in which we operate. While we generally deal with multiple air carriers, we have developed good business relations with certain air carriers with whom we deal on a regular basis and these carriers are also our top ten suppliers.
"For nine months period ended December 31, 2024, our top 10 suppliers in terms of cost of service are (i) Emirates (ii) Qatar Airways (iii) Air India (iv) Lufthansa Cargo (v) Virgin Atlantic (vi) Air France (vii) British Airways (viii) Turkish Airlines (ix) DHL Express (India) and (x) MSC Mediterranean Shipping Company."