FlySBS Aviation IPO sees blockbuster 294x subscription, GMP signals strong listing debut

FlySBS Aviation Limited, a pioneering player in India’s private aviation sector, has seen overwhelming investor interest in its ₹102.53 crore book-built IPO, which closed for subscription on August 5, 2025, after being open for five days starting August 1. The issue was oversubscribed 294.73 times, according to the latest data released by the NSE SME platform. With strong participation from anchor investors, HNIs, and retail investors, FlySBS is set for a potentially lucrative listing on August 8, 2025.

Company Overview and Vision

FlySBS Aviation is on a mission to democratise access to private aviation by offering fractional ownership and on-demand jet chartering services. Customers can choose from a fleet of pre-owned private jets, paying only for the hours flown rather than full ownership, making luxury aviation more accessible. The company is driven by a seasoned management team with deep roots in aviation, automotive, and luxury industries.

Promoted by Capt. Deepak Parasuraman, Kannan Ramakrishnan, and Ambashankar, the leadership team brings a wealth of experience in aviation, cargo logistics, and sales strategy. Capt. Parasuraman boasts over 26 years in aviation, while Kannan has over two decades in luxury automotive retailing. CEO Ambashankar strengthens the brand with a customer-centric, marketing-led approach.

IPO Structure and Details

• Issue Size: ₹102.53 Crores (Entirely Fresh Issue)

• Shares Offered: 45.57 lakh equity shares

• Price Band: ₹210 – ₹225

• IPO Lot Size: 600 shares per lot

• Minimum Investment: ₹2,70,000 (for 2 lots or 1,200 shares)

• Anchor Investment: ₹29.16 crore raised from anchor investors

• Registrar: MUFG Intime India Pvt Ltd

• Lead Manager: Vivro Financial Services Pvt Ltd

• Market Maker: Giriraj Stock Broking Pvt Ltd

• Listing Platform: NSE SME

• Tentative Listing Date: August 8, 2025

• Allotment Date: August 6, 2025

IPO Subscription and Grey Market Buzz

On its final day, FlySBS Aviation’s IPO witnessed a phenomenal response with overall subscription hitting 294.73 times, reflecting exceptional demand across all investor categories. Notably:

• Retail Individual Investors (RIIs): Huge oversubscription

• Non-Institutional Investors (NIIs): Multiple times oversubscribed

• Qualified Institutional Buyers (QIBs): Anchors subscribed at upper band

The Grey Market Premium (GMP) of ₹103, as of July 29, 2025, suggests listing gains of nearly 46%, indicating expected debut price of around ₹328. The GMP, however, is unofficial and speculative, used for educational purposes.

FlySBS Financial Performance

FlySBS Aviation has shown impressive growth across key metrics in the past three financial years:

This significant growth underscores strong customer demand, scalable operations, and effective cost management.

Additional financial indicators:

• Pre-issue EPS (FY24): ₹25.47

• Post-issue EPS: ₹16.42

• Pre-issue P/E Ratio: 8.83x

• Post-issue P/E Ratio: 13.71x

• ROCE (FY24): 41.80%

• ROE (FY24): 32.25%

• RoNW (FY24): 32.25%

These numbers indicate that the IPO is fairly valued, given the high return metrics and earnings growth.

IPO Objectives: Strategic Use of Funds

The company plans to channel the proceeds of the IPO into three key areas:

1. ₹8,047.24 lakh will go toward capital expenditure for acquiring six pre-owned aircraft on long-term dry lease.

2. ₹727.60 lakh will be used to repay or prepay existing borrowings.

3. Remaining funds will be allocated for general corporate purposes, such as technology upgrades, marketing, and operations.

Anchor Investors & Allotment Strategy

The company allocated 12,96,000 equity shares to Anchor Investors at ₹225 per share, the upper end of the price band, raising ₹29.16 crore in consultation with the book-running lead managers.

The IPO allotment will be finalized on August 6, 2025, and investors can check their allotment status online by:

• Visiting the registrar’s website

• Selecting “FlySBS Aviation Limited IPO”

• Entering PAN, DP ID, or application number

Industry Outlook and Competitive Edge

The private jet chartering industry in India is still in its infancy, with only a few players operating at scale. However, increasing disposable incomes, demand for luxury and convenience, and corporate travel requirements are likely to drive rapid growth.

FlySBS Aviation stands out with its pay-per-hour model, enabling asset-light expansion, and giving customers the flexibility and access typically reserved for full aircraft owners.

Their fleet acquisition strategy, experienced crew and management, and growing HNI clientele in India position the company as a frontrunner in the sector.

Should You Apply to FlySBS Aviation IPO?

Given the stellar subscription numbers, healthy GMP, and strong financial growth, FlySBS Aviation IPO appears poised for a robust listing debut. While listing gains look promising, long-term investors may also find value in the company’s vision and growth trajectory, provided the business executes effectively.

However, since the IPO is being listed on the NSE SME platform, liquidity could be relatively lower compared to mainboard listings. Investors must also consider that minimum investment requirement is high (₹2.7 lakh), limiting access for many small retail participants.

Conclusion

FlySBS Aviation’s IPO presents a unique opportunity to invest in a fast-scaling luxury aviation player with a customer-first model. While listing gains seem likely based on current GMP trends and anchor investor interest, long-term success will depend on execution, fleet management, and customer acquisition in a niche but growing market.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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