Skyways Air Services Invests ₹3.13 Cr in Dubai Subsidiary

Key Quantitative Figures

The company has made a further investment in its foreign subsidiary, Skyways SLS Cargo Services LLC, by subscribing to its additional equity share capital. The total investment amount is AED 1,203,840. This is equivalent to USD 327,888 and Indian Rupees (INR) 3,13,29,824.80.

The investment is divided into 198 shares. The face value of each share is AED 1,000. The subscription price includes a premium of AED 5,080 per share.

This investment increases the company's shareholding and control in the subsidiary to 90%.

Parties Involved

• Listed Entity Making the Disclosure: Skyways Air Services Limited (Formerly Skyways Air Services Private Limited).
• Target Entity: Skyways SLS Cargo Services LLC, a subsidiary company incorporated in Dubai, United Arab Emirates (UAE).
• Company Officer: Hitesh Kumar, Company Secretary cum Compliance Officer (Membership No. A33286), signed the disclosure.
• Regulatory Authorities Addressed: National Stock Exchange of India Limited (NSE) and BSE Limited.

Purpose and Rationale

The stated purpose of the investment is to meet the working capital requirements of the subsidiary, Skyways SLS Cargo Services LLC.

Financial and Operational Impact

Target Company Details (Skyways SLS Cargo Services LLC):

• Business Activity: Engaged in logistics business activities, specifically freight forwarding, in Dubai.
• Industry: Integrated Logistics, Transportation, and Freight Forwarding.
• Turnover History:
• Financial Year 2023-24: INR 25.73 Crores
• Financial Year 2024-25: INR 85.57 Crores
• Financial Year 2025-26: INR 39.39 Crores
• Geographic Presence: United Arab Emirates (UAE).

Transaction Details:

• The transaction is classified as a related-party transaction because the target is a subsidiary and the promoters have a beneficiary interest in it.
• The company has stated that the transaction is being done at arm's length.
• The mode of consideration is cash.
• No specific governmental or regulatory approvals have been identified as required for the investment, though it is subject to confirmation under relevant laws.

Capital Structure Impact

The investment involves a subscription to additional equity share capital of the subsidiary. This will increase the parent company's investment in the subsidiary and solidify its 90% controlling stake. The disclosure does not provide details on the change to the parent company's own capital structure.

Cash Flow Implications

The investment represents a cash outflow of INR 3,13,29,824.80 from Skyways Air Services Limited to its subsidiary, Skyways SLS Cargo Services LLC, for the purpose of working capital.