In a strong opening to its public market debut, Flysbs Aviation’s SME IPO garnered significant investor interest, with 50% of the issue subscribed by midday on Day 1, reflecting a robust appetite from retail participants. Meanwhile, the grey market premium (GMP) surged to ₹195, indicating a potential 87% listing gain over the IPO’s upper price band of ₹225 per share.
The IPO, which opened for subscription on August 1, 2025, will close on August 5, with allotment expected on August 6 and listing on August 8 on the NSE SME platform. Flysbs Aviation, a Chennai-based private jet charter company, plans to raise ₹102.53 crore through this offer, entirely composed of a fresh issue of equity shares.
IPO Snapshot: Key Facts at a Glance
| Parameter | Details |
|---|---|
| Company Name | Flysbs Aviation Ltd |
| Issue Size | ₹102.53 crore |
| Price Band | ₹210 – ₹225 per share |
| Lot Size | 600 shares (₹1,35,000 minimum) |
| Issue Opens | August 1, 2025 |
| Issue Closes | August 5, 2025 |
| Allotment Date | August 6, 2025 |
| Listing Date | August 8, 2025 |
| Market | NSE SME Platform |
| Grey Market Premium (GMP) | ₹195 per share |
| Estimated Listing Price | ₹420 per share |
| Potential Listing Gain | ~87% |
Day 1 Subscription Status
As of midday on the first day of bidding, Flysbs Aviation’s IPO saw around 50% of its total offer subscribed, primarily due to enthusiastic retail investor participation. The breakdown is as follows:
| Category | Subscription Status |
|---|---|
| Retail Individual Investors | 2.08x |
| Non-Institutional Investors | 0.56x |
| Qualified Institutional Buyers (QIBs) | Yet to bid |
| Total | ~50% – 65% (combined) |
The strong retail demand suggests high expectations for post-listing performance, bolstered by the promising GMP activity.
Company Overview: Flysbs Aviation Limited
Flysbs Aviation, founded in 2020 and headquartered in Chennai, operates as a non-scheduled air operator certified by the Directorate General of Civil Aviation (DGCA). The company provides private jet charter services for corporate executives, government dignitaries, celebrities, and other premium clients across India and selected international destinations.
Its services include on-demand charter flights, VIP travel, medical evacuations, and aerial photography. Flysbs operates with a growing fleet of light and mid-size jets and is looking to expand its operational capacity with this IPO.
Financial Performance
Over the last two financial years, Flysbs Aviation has demonstrated remarkable growth, driven by increased demand for bespoke air travel solutions in India.
| Financial Metric | FY24 | FY25 | Growth (YoY) |
|---|---|---|---|
| Revenue from Operations | ₹106.7 crore | ₹195.38 crore | +83.1% |
| EBITDA | ₹12.94 crore | ₹34.67 crore | +167.8% |
| Profit After Tax (PAT) | ₹11.24 crore | ₹28.41 crore | +152.6% |
| EBITDA Margin | 12.1% | 17.7% | Improved |
| Return on Net Worth (RONW) | 21.3% | 36.8% | Improved |
This financial growth underscores the company’s readiness for scale, profitability, and long-term sustainability in the niche aviation sector.
Use of IPO Proceeds
Flysbs plans to utilize the IPO proceeds as follows:
- Aircraft Fleet Expansion: Acquire 6 additional aircraft under dry lease arrangements to enhance coverage and customer servicing capability.
- Debt Repayment: Reduce financial liabilities to strengthen the balance sheet.
- Working Capital Requirements: Address increasing operational needs including staff expansion, maintenance, and marketing.
- General Corporate Purposes: Leverage remaining funds for strategic and administrative expenses.
Industry Outlook
The Indian private aviation market is undergoing transformation post-pandemic. Increased preference for private travel, rising corporate charters, and expanding HNI demand have paved the way for chartered air service providers like Flysbs to thrive.
The sector is projected to grow at a CAGR of over 15% in the next five years, fueled by:
- Rising disposable income among India’s ultra-rich
- A growing number of charter requests from tier-2 and tier-3 cities
- Enhanced infrastructure and better airport connectivity
Flysbs’ positioning in this segment gives it a strategic advantage as a first-mover SME listed player in the aviation sector.
GMP Buzz and Investor Sentiment
The ₹195 grey market premium is driving optimistic investor expectations. With a potential listing price near ₹420 per share (based on GMP), the implied listing gain stands at approximately 87% — a significant indicator of market appetite.
GMP, however, is an informal indicator and not guaranteed. It reflects sentiment and speculative buying in the unregulated grey market.
Strengths & Challenges
Strengths:
- Experienced management and early mover in SME private aviation listing
- Rapidly growing revenue with strong profit margins
- Scalable business model with low fixed costs through leasing
- Asset-light strategy using dry lease rather than full ownership
Challenges:
- Capital-intensive sector with heavy dependence on aviation fuel pricing
- Limited scale compared to large commercial aviation players
- Seasonal demand and economic sensitivity
- Competitive pressures from other charter service providers
Should You Subscribe?
For retail investors looking for short-term gains, the IPO presents a compelling opportunity based on:
- High grey market premium (GMP)
- Solid financials with profitability
- Positive sectoral tailwinds
- Strong retail subscription momentum
However, for long-term investors, it is crucial to assess:
- The company’s ability to scale sustainably
- Its ability to withstand fuel cost fluctuations
- Regulatory risks associated with aviation operations
Expert Verdict
Flysbs Aviation IPO has started strong with 50% of the issue subscribed on Day 1, with notable interest from retail investors. If GMP trends hold steady, listing day gains could be substantial. However, given the volatility of aviation markets, long-term investors should approach with cautious optimism.
Disclaimer: This article is for informational purposes only. It is not investment advice or a recommendation to subscribe to or refrain from subscribing to any IPO. Readers are advised to consult certified financial advisors before making any investment decisions. The data presented is based on preliminary reports and market indicators as of the date of publishing.
