FlySBS Aviation IPO

About FlySBS Aviation IPO

The IPO of FlySBS Aviation Ltd comprises a fresh issue of up to 45,57,000 equity shares. There is no offer for sale in this IPO, which is a 100% book-built issue. The price band is [TBA] and the lot size is [TBA].

The IPO opens on [TBA] and closes on [TBA]. The listing date is [TBA]. The allotment date is [TBA]. The credit of shares to the demat account will take place on [TBA]. The initiation of refunds will take place on [TBA].

FlySBS Aviation Ltd is into the business of providing private, non-scheduled air charter services from India, focusing on delivering seamless air travel solutions to elite clientele. It’s a DGCA approved non-scheduled airline operator holding a valid air operator permit. Its customer base includes entrepreneurs, senior corporate executives, politicians, diplomats, celebrities, and other VIPs, all of whom require tailored services to meet their specific travel needs.

Objectives of FlySBS Aviation IPO

• Funding capital expenditure towards acquisition of six new aircraft on long term dry lease basis
• Repayment/prepayment, in full or part, certain outstanding borrowings availed by the company
• General corporate purposes

Industry Outlook

The global airline industry plays a pivotal role in connecting virtually every country, facilitating a truly interconnected global economy. Beyond just moving people and goods, industry itself is a major economic engine, impacting various sectors like aircraft manufacturing, tourism, and more. Few industries receive as much attention as airlines, whether from those operating within the industry, government policy makers, media outlets, or the billions of passengers who use their services.

The global aviation market size was valued at approximately $1,011 billion in 2023. The market is projected to grow at a CAGR (Compound Annual Growth Rate) of 6-8% from 2023 to 2029, driven by increasing air passenger traffic, rising disposable incomes, and growing tourism across emerging economies.

On the other hand, the private jet industry in developed economies has shown significant growth, driven by rising demand for exclusive, flexible, and time-efficient travel. High-net-worth individuals, corporations, and executives prefer private jets for their privacy, convenience, and ability to access smaller, less congested airports. The pandemic accelerated demand as travellers sought safer alternatives to commercial flights.

Also, the market size of Indian aviation stands at around $15 billion as of FY23. The industry has grown at a CAGR of 10.3% from FY19-FY23. Furthermore, the industry is expected to grow at a CAGR of 7-9% to reach $22-27 billion until FY29.

Company Information

FlySBS Aviation Ltd is engaged in the business of providing private, non-scheduled air charter services from India, focusing on delivering seamless air travel solutions to elite clientele. It’s a DGCA-approved non-scheduled airline operator holding a valid air operator permit.

Its customer base includes entrepreneurs, senior corporate executives, politicians, diplomats, celebrities, and other VIPs, all of whom require tailored services to meet their specific travel needs. These demands often encompass flexible flight schedules, access to exclusive destinations, premium luxury amenities, privacy, and stringent security protocols.

Its charter services cater to a range of specific travel needs, such as direct travel convenience, multi-destination within tight timeframes, or access to locations lacking commercial flight connectivity. Additionally, its services are frequently sought for critical purposes like medical emergencies, key business meetings, promotional events, and other high-priority engagements.

Strengths of FlySBS Aviation IPO

• Experienced promoters and senior management with extensive domain knowledge
• Strategic positioning in a high entry barrier industry
• In-house fleet and existing flight operational experience
• Synergies with its group company, Afcom Holdings Limited
• Operational excellence, aircraft maintenance and tailored solutions for its clients

Risks of FlySBS Aviation IPO

• Dependence on niche and high-profile clientele
• Increase in rate of air turbine fuel could affect operations and financials
• Delay in order placement as per object issue could affect operations
• Non-compliance with aircraft lease agreement could impact operations
• Regulatory risks and impact of changing government regulations

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Manager of FlySBS Aviation

• IPO Registrar: MUFG Intime India Pvt Ltd
• Book Running Lead Manager: Vivro Financial Services Private Ltd

FlySBS Aviation IPO Business Model

The company’s charter services cater to a range of specific travel needs, such as direct travel convenience, routes to multiple destination within tight timeframes, or access to locations lacking commercial flight connectivity. It offers comprehensive air chartering services, operating dynamically across domestic and international routes.

FlySBS Aviation IPO Company Growth Trajectory

The revenue from operations of FlySBS Aviation Ltd grew from ₹27.2373 crores in FY 22 to ₹106.4869 crores in FY 24, while its EBITDA margin grew from 6.10% in FY 22 to 14.04% in FY 24. Its PAT margin grew from 3.61% in FY 22 to 10.54% in FY 24. Total departures increased from 158 in FY 22 to 361 in FY 24, while unique destinations touched increased from 79 in FY 22 to 301 in FY 24.

Also, its total aircraft flying hours have significantly increased over the last three fiscal years and for the nine months period ended December 31, 2024. Its total aircraft flying hours were 633 hours, 522 hours, 1,486 hours, and 1,849 hours, respectively.

FlySBS Aviation IPO Market Position

FlySBS Aviation Ltd currently provides private air-chartering services in India with an operating base located in Chennai, Tamil Nadu. It has successfully flown clients to diverse destinations worldwide, spanning six continents.

This includes routes to the far east in Japan, the Middle East, New Zealand, the Arctic regions of Europe and North America, and as far as Mauritania in Africa. Its operational reach demonstrates its ability to connect clients with a wide array of global destinations, fulfilling its unique travel requirements.

How to Check Allotment Status of FlySBS Aviation IPO?

Visit the Registrar’s Website

• Visit the official website of MUFG Intime India Pvt Ltd
• Click on ‘Rights Issues’ under ‘Investor Services’
• Click on ‘Check Allotment Status’
• Choose Company Name and enter either your Demat account no, CAF or Folio No
• Click on Submit to know the status

Check on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO bid verification module. You can use it to check the status of FlySBS Aviation Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

• Company name from dropdown
• Application number
• PAN Then click 'Submit' to know the allotment status.

How to Apply for FlySBS Aviation IPO?

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.