Flysbs Aviation IPO: Robust Growth, High Listing Gains

Flysbs Aviation Limited, a DGCA‑approved non‑scheduled airline operator specializing in private air charter and aviation support services, is gearing up to launch its Initial Public Offering (IPO) from 1 August 2025 to 5 August 2025. The company proposes to issue 4,557,000 equity shares of face value ₹10 each, targeting total proceeds of ₹102.53 crore at the upper end of the price band (₹210–225 per share). The shares are expected to list on the NSE Emerge SME platform on 8 August 2025, post allotment and credit to demat accounts.

📊 IPO Timeline & Structure

Reservation breakdown:

• Anchor investors: ~28.5%

• QIBs: ~19%

• NIIs (HNI): ~14–15%

• Retail: ~33%

Retail investors must apply for a minimum of 2 lots (1,200 shares) costing ₹2.70 lakh at the ₹225 cap. NII investors can apply for larger multiples.

🚀 Company Overview & Financial Performance

Business operations:
Flysbs Aviation operates an asset‑light model offering private charter services to high‑net‑worth individuals, corporate executives, and government dignitaries. Its services include private charters, aviation training, ground handling, and manpower support at select airports. The majority of its revenue is generated from corporate and international clients.

Growth trajectory:

• Aircraft utilization increased from 522 hours in FY 23 to ~2,600 hours in FY 25.

• The company has expanded its operational footprint to several metro and Tier‑II airports.

Key financials (FY 25 vs FY 24):

• Revenue: ₹195.38 Cr vs ₹106.72 Cr → +83%

• Profit after tax: ₹28.41 Cr vs ₹11.25 Cr → +153%

• EBITDA: ₹41.41 Cr vs ₹14.99 Cr

• Assets: ₹191.84 Cr vs ₹77.15 Cr

• Net worth: ₹128.35 Cr vs ₹47.99 Cr

Post‑IPO, promoter holding will reduce from 44.08% to 32.47%, improving the public float and market liquidity.

🎯 Use of IPO Proceeds

The funds raised through the IPO will be used for:

1. Leasing six pre‑owned aircraft on long‑term dry lease to expand charter capacity.

2. Partial or full repayment of existing borrowings, strengthening the balance sheet.

3. General corporate purposes, including working capital, infrastructure, and expansion.

📈 Valuation & Metrics

The issue is priced at ₹210–225 per share, translating to a PE in the high teens to early twenties based on FY 25 earnings.

Key valuation ratios (pre‑issue estimates):

• EPS: ~₹22.28

• Return on Net Worth (RoNW): ≈32%

• Return on Capital Employed (RoCE): ≈41.8%

• EBITDA margin: ≈21.2%

• Price‑to‑Book (P/B): ≈2.23

Minimum retail investment:

• ₹1,26,000 (2 lots at ₹210)

• ₹2,70,000 (2 lots at ₹225 cap)

⚖️ Strengths vs Risks

Strengths:

• Strong year‑on‑year growth and healthy profitability.

• Asset‑light model reduces capital risk while enabling scalability.

• Niche private charter services with high entry barriers.

• Experienced management with deep aviation sector expertise.

Risks:

• Aviation is capital‑intensive and highly regulated.

• SME listing may face low trading liquidity.

• Heavy reliance on corporate clients could affect revenue in a slowdown.

• Aircraft leasing introduces long‑term obligations.

📊 Grey Market & Listing Outlook

The Grey Market Premium (GMP) before listing suggests positive sentiment, with expectations of significant listing gains. Investors anticipate strong subscription from HNIs and QIBs, given the company’s growth and profitability profile.

📝 Conclusion

The Flysbs Aviation IPO presents an opportunity in India’s growing charter aviation space. The company has showcased robust financial performance, a scalable business model, and a clear expansion plan using the IPO proceeds. While the SME nature of the issue introduces some liquidity risk, the combination of strong fundamentals and optimistic market sentiment positions this IPO as a potential candidate for both listing gains and long‑term growth, particularly for investors comfortable with the aviation sector’s cyclical nature.

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