New Delhi — Skyways Air Services is preparing for its stock market debut after its Rs 582.8 crore initial public offering attracted a grey market premium of about 33% on the final day of bidding, although disclosures in the company’s Red Herring Prospectus point to several risks investors may need to consider.
The grey market premium, or GMP, is an unofficial indicator and can fluctuate before listing. It does not guarantee either the eventual listing price or future returns.
Skyways Air Services has set a price band of Rs 131 to Rs 138 per equity share. The offering includes a fresh issue of up to 2.89 crore shares and an offer for sale of up to 1.33 crore shares by existing shareholders.
Among the risks disclosed in the RHP is an ongoing Economic Offences Wing investigation involving Skyways Air Services and its material subsidiary, Brace Port Logistics Limited, over allegations including fraud, over-invoicing, forgery and criminal conspiracy.
The investigation stems from FIR No. 0172 of 2025, registered by the Delhi EOW following a complaint from UK-based PG Paper Company Limited. The FIR names Skyways Air Services as Accused No. 3 and Brace Port Logistics as Accused No. 2.
The company’s RHP lists the FIR as an outstanding criminal proceeding against Skyways and its subsidiary.
According to allegations cited in the prospectus and in a representation submitted to the Securities and Exchange Board of India, PG Paper has accused Skyways group entities, including Brace Port, RIV Worldwide Ltd. UK and Skyways SLS Logistik GmbH, of securing freight business through coordinated actions involving allegedly inflated freight invoices, bribery, fraud and misrepresentation.
PG Paper has alleged that more than Rs 800 crore in business was conducted through the three subsidiaries since 2021 and estimated its direct losses at no less than Rs 44.20 crore.
In its representation to SEBI, PG Paper further alleged that Brace Port and Skyways collectively over-invoiced it by approximately Rs 44.20 crore.
The complainant alleged that freight charges were inflated in some cases by about 40% to as much as 300% above prevailing market rates. It also alleged that internal controls were bypassed through inducements offered to an employee involved in freight procurement.
The FIR includes allegations under provisions dealing with criminal breach of trust, cheating, forgery, use of forged documents and criminal conspiracy under the Indian Penal Code and the Bharatiya Nyaya Sanhita.
The offer documents also highlight regulatory action related to the investigation.
The Central Board of Indirect Taxes and Customs issued a notice seeking suspension and proposed revocation of Skyways’ Authorised Economic Operator-LO certificate. The company’s AEO-LO status has remained suspended since May 2026 while the investigation continues.
Skyways has submitted a response to the relevant authority, and the matter remains pending.
The company did not comment when previously contacted regarding the allegations. (Source: IANS)
