Flysbs Aviation IPO: GMP, Review, and Key Details

The Flysbs Aviation IPO has captured significant attention in the Indian stock market as it opens for subscription on 1 August 2025. The ₹102.53 crore IPO is a bookbuilding issue entirely comprising fresh equity shares of 45.57 lakh shares. Investors are keenly tracking its grey market premium (GMP), which suggests strong potential listing gains.

The IPO is scheduled to close on 5 August 2025, with the tentative listing date on 8 August 2025 on the NSE SME platform. With its high GMP and a strong improvement in financial performance, Flysbs Aviation has become a notable entry in the SME IPO space this year.

Flysbs Aviation IPO: Issue Highlights

The IPO aims to raise ₹102.53 crore through a fresh issue of 45.57 lakh shares. Below are the key highlights:

• IPO Open Date: 1 August 2025

• IPO Close Date: 5 August 2025

• Allotment Date: 6 August 2025

• Refund Initiation: 7 August 2025

• Listing Date: 8 August 2025

• Face Value: ₹10 per share

• Price Band: ₹210 – ₹225 per share

• Issue Type: Bookbuilding IPO

• Lot Size: 600 shares per lot

• Retail Minimum Investment: 2 lots = 1,200 shares = ₹2,70,000

• Exchange: NSE SME

This high minimum investment reflects the IPO’s focus on serious retail and HNI investors in the SME segment.

Flysbs Aviation IPO GMP and Listing Gains

The Grey Market Premium (GMP) is a vital indicator for investors looking for listing gains.

As of 1 August 2025, the Flysbs Aviation IPO GMP is ₹195 per share. With the upper price band at ₹225, the estimated listing price is:

₹225 + ₹195 = ₹420 per share

This translates to an estimated listing gain of 86.67%, making it one of the most promising SME IPOs of the year.

GMP Trends in the Last Week:

The stable rise in GMP from ₹150 to ₹195 in the last two days indicates strong investor sentiment ahead of the listing. However, investors should note that GMP is unofficial and volatile, influenced by market conditions.

Company Background: Flysbs Aviation Limited

Flysbs Aviation Limited is an emerging player in regional aviation and charter services in India. The company focuses on aircraft leasing, regional passenger services, and charter operations.

• Incorporation: India-based aviation company expanding in regional connectivity.

• Primary Business: Passenger flights, aircraft leasing, and charter operations.

• Fleet Expansion: Plans to acquire six new aircraft through IPO proceeds.

• Market Position: Targets growing demand for regional air travel under the UDAN scheme.

Its rapid growth is supported by rising regional travel demand, government support for regional air connectivity, and a lean operational model.

Financial Performance

Flysbs Aviation has demonstrated remarkable growth in the last financial year:

• Revenue: ₹195.38 crore in FY25 vs ₹106.72 crore in FY24 (+83% YoY)

• Profit After Tax (PAT): ₹28.41 crore in FY25 vs ₹11.25 crore in FY24 (+153% YoY)

• EBITDA Margin: 21.20%

• Return on Net Worth (RoNW): 32.25%

• Return on Capital Employed (ROCE): 41.80%

This profitability surge reflects improved fleet utilization and higher passenger load factors, enhancing investor confidence ahead of the IPO.

Technical and Valuation Indicators

Understanding the IPO valuation is crucial for investors.

Pre-IPO Metrics:

• PE Ratio: 10.1

• EPS: ₹22.28

• Price to Book Value (P/B): 2.23

Post-IPO Metrics:

• PE Ratio: 13.71

• EPS: ₹16.42 (due to equity dilution)

Despite the rise in PE post-issue, the valuation remains reasonable compared to other listed aviation and charter service peers in India.

IPO Objectives

The primary objectives of the IPO are as follows:

1. Repayment of Debt

   • Prepayment or repayment of certain outstanding borrowings to reduce interest burden.

2. Fleet Expansion

   • Acquisition of six new aircraft on long-term dry lease to expand operational capacity.

3. General Corporate Purpose

   • Funds for operational growth, working capital, and infrastructure enhancement.

These objectives align with the company’s aggressive expansion strategy in the regional aviation market.

Flysbs Aviation IPO Review

Industry experts have given neutral-to-positive ratings for the IPO:

• Strengths:

  • Strong revenue and PAT growth.

  • Attractive GMP indicating high listing gain potential.

  • Exposure to India’s growing regional aviation sector.

• Risks:

  • Aviation sector sensitive to fuel price volatility.

  • SME IPOs involve higher liquidity risk post-listing.

  • Dependence on government UDAN policies and regional connectivity.

Recommendation:
Investors seeking short-term listing gains may find this IPO attractive due to its high GMP. Long-term investors should analyze operational risks and sectoral challenges before holding beyond listing.

Estimated Listing Scenario

Given the ₹195 GMP and ₹225 issue price, the listing price is projected at ₹420 per share, implying:

• Absolute Listing Gain: ₹195 per share

• Percentage Gain: 86.67%

• 2-Lot Investment (1,200 shares):

  • Issue Price: ₹2,70,000

  • Estimated Listing Value: ₹5,04,000

  • Estimated Profit: ₹2,34,000

These figures showcase why retail and HNI investors are actively tracking the GMP movement.

Long-Term Prospects

While the IPO appears lucrative for short-term gains, the long-term potential depends on:

1. Fleet Expansion Execution

   • Successful integration of six new aircraft and improved route connectivity.

2. Sustained Profitability

   • Maintaining high load factors and EBITDA margins above 20%.

3. Sectoral Growth

   • Benefiting from government focus on regional air travel and increasing middle-class air travel demand.

4. Debt Management

   • Reducing leverage with IPO proceeds enhances financial stability.

If these strategies succeed, Flysbs Aviation could emerge as a key SME aviation player in the coming years.

Conclusion

The Flysbs Aviation IPO combines high short-term listing potential with medium-term growth prospects in India’s regional aviation sector. With a GMP of ₹195, investors anticipate an 86.67% listing gain if current sentiment sustains.

However, SME IPOs carry liquidity and sectoral risks, and investors should consider their risk appetite before subscribing for long-term holdings.

This IPO is well-suited for investors seeking short-term profits, while long-term success will depend on execution, cost control, and market expansion.

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