Dubai logistics unit gets financial backing from Skyways
Skyways Air Services Limited is raising its financial exposure in the Middle East with a new equity investment of up to AED 1,203,840 in its Dubai based subsidiary, Skyways SLS Cargo Services LLC. The move is designed to bolster the working capital position of the subsidiary and to inject additional financial resources into the operations of its logistics and freight forwarding business in the UAE.
Earlier known as Skyways Air Services Private Limited, the company disclosed this in regulatory filings submitted to the National Stock Exchange of India Limited and BSE Limited. This information is submitted in compliance of Regulation 30 read with Regulation 30(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Subscription to new equity of approximately $327,888
The proposed investment will be made by way of cash subscription for additional equity share capital of Skyways SLS Cargo Services LLC. The total amount shall not exceed AED 1,203,840 equivalent to approx. $ 327,888 or ₹ 3,13,29,824.80.
The capital contribution shall be in the form of 198 new shares with a nominal value of AED 1,000 each and a premium of AED 5,080. Following the transaction, Skyways Air Services Limited will retain its existing controlling interest of 90% in its Dubai based subsidiary.
The investment is therefore intended to enhance the financial resources available to the UAE operation, without changing the ownership position of the parent company.
The main goal is still working capital.
The additional equity is meant for working capital requirements of Skyways SLS Cargo Services LLC, the regulatory filings showed. The funding would provide the subsidiary with additional financial flexibility while it continues to operate in the integrated logistics, transportation and freight forwarding market.
The transaction has been classified as a related party transaction as the promoters of Skyways Air Services Limited have beneficial interest in the subsidiary through direct holding in the parent company.
Skyways has confirmed that the investment will be made on an arm’s length basis in accordance with the applicable corporate governance requirements.
The company expects the equity subscription process to be completed in about 30 days. It also said it has not determined any specific government or regulatory approvals required for the transaction to proceed.
Dubai branch hit by turnover swings
Skyways SLS Cargo Services LLC was founded on August 7, 2021 and engages in integrated logistics, transportation and freight forwarding activities. Registered office- 202 B, 2nd floor, Bin Khedia Center, Block A, AL Garhoud, Dubai-62419 UAE.
The subsidiary has reported different turnover in each of the last three financial years in which it has reported reflecting changes in its business activity .
During FY 2023-24, the company had an annual turnover of ₹25.73 crore which increased to ₹85.57 crore in FY 2024-25. The company recorded a turnover of ₹39.39 crore in the year ended FY 2025-26.
The figures give an overview of the financial development of the subsidiary and the importance of having sufficient working capital to continue its operations.
Skyways’ investment-powered international expansion strategy
The investment and financial information of the subsidiary has been verified by Hitesh Kumar, Company Secretary and Compliance Officer of Skyways Air Services Ltd.
Skyways is injecting additional funds into its Dubai-based subsidiary to bolster the financial base of its Middle East operations as it continues to expand its international logistics network.
The Indian logistics group also owns 90% stake in the UAE entity, giving it strategic control over the subsidiary as it provides for the subsidiary’s operational and financial needs.
The AED 1.2 million investment is part of Skyways’ broader plan to expand its regional footprint and consolidate its international logistics operations.
