SASkyways Air Services544890Board key decisions

Board approves 40% disinvestment in Avito Global Freight, Abu Dhabi step-down subsidiary and Vietnam guarantee

Board approved: transfer of 40% in Avito Global Freight to its core operating team for Rs. 92.12 Lakhs (company retains 60%); incorporation of a step-down subsidiary in Abu Dhabi's Masdar City Free Zone.

By ScoutQuest · Thu 15 Oct 2026, 9:40 PM IST · 3 min read

Stake Transfer in Avito Global Freight

40% transferred to core operating team for Rs. 92.12 Lakhs; company retains 60%

Abu Dhabi Step-down Subsidiary Subscription

up to Rs. 7.00 Crores, Avito Global Freight holding 100%

Corporate Guarantee to Techombank

not exceeding VND 30,000,000,000, equivalent to INR 11.00 Crore approx.

What the Board approved

The Board of Directors met on 15 October 2026 and approved three proposals, disclosed as the outcome of the board meeting.

1) Disinvestment of 40% in Avito Global Freight Private Limited

The company will transfer 40% of its existing shareholding in its wholly owned subsidiary, Avito Global Freight Private Limited, to the core operating team of that company, for a total consideration of Rs. 92.12 Lakhs. The update describes this dilution as part of the company's strategic expansion by way of transferring the shares to the core operating team. After the proposed transaction is completed, Avito Global Freight Private Limited will cease to be a wholly owned subsidiary but will continue to remain a subsidiary, with the company retaining 60% of its paid-up equity share capital.

The buyers named in the annexure are Avito's Managing Director, its Whole Time Director and Chief Executive Officer, its Whole Time Director and Chief Financial Officer, and four Vice Presidents - Operations, Sales and Marketing, Air Freight, and Ocean Freight. The update states these buyers do not belong to the promoter, promoter group or group companies, and that the transaction is not a related party transaction.

The annexure, which states figures in Rs. in Lakhs, records Avito Global Freight Private Limited's net worth at 97.68 as on 31 March 2026.

The Board also approved that the company and the core operating team of Avito Global Freight Private Limited shall invest in that company an aggregate amount not exceeding Rs. 2 crore, in one or more tranches.

2) Step-down subsidiary in Abu Dhabi

The Board approved the incorporation of a wholly owned subsidiary of Avito Global Freight Private Limited in Masdar City Free Zone, Abu Dhabi, United Arab Emirates, which will make it a step-down subsidiary of the company. The stated intent is to expand Avito's business operations, facilitate its presence in international markets and explore additional business opportunities. The annexure lists the industry and line of business as logistics, the nature of consideration as cash, and the cost of subscription / price at which the shares are subscribed as up to Rs. 7.00 Crores in one or more tranches, with Avito Global Freight Private Limited holding 100% shareholding. The incorporation and investment are subject to obtaining the necessary approvals and complying with applicable Indian and overseas statutory and regulatory requirements, including the applicable foreign exchange and overseas investment framework.

3) Corporate guarantee

The Board approved providing a corporate guarantee to Techombank on behalf of Skyways SLS Logistik Company Limited (Vietnam), a subsidiary of the company, for an amount not exceeding VND 30,000,000,000 (Thirty Billion Vietnamese dong), equivalent to INR 11.00 Crore approx., for issuance of a bank guarantee to the International Air Transport Association (IATA). The annexure records a contingent liability to the extent of the corporate guarantee provided. It also notes that the promoters have a beneficiary interest in the entity as it is a subsidiary, and that the transaction is being done at arm's length.

Points to note

• Avito Global Freight Private Limited remains a subsidiary after the transfer; what changes is its status as a wholly owned subsidiary, with the company retaining 60% of its paid-up equity share capital.
• The 40% goes to the subsidiary's own operating leadership, and the update says these buyers are outside the promoter, promoter group and group companies, and that the transaction is not a related party transaction.
• The corporate guarantee is disclosed as a contingent liability to the extent of the guarantee provided.
• Two separate investment limits are mentioned: up to Rs. 2 crore into Avito Global Freight Private Limited by the company and the core operating team together, and up to Rs. 7.00 Crores as the cost of subscription to the proposed Abu Dhabi entity's shares.

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