IPO Note : Flysbs Aviation Ltd by Choice Broking Ltd
Salient features of the IPO:
* Flysbs Aviation Limited (FAL), engaged in the business of providing private, non-scheduled air charter services from India, focused on delivering seamless air travel solutions to elite clientele, is coming up with an IPO to raise around Rs. 102.53cr, which opens on 1st Aug. and closes on 5th Aug. 2025. The price band is Rs. 210 - 225 per share.
* The public issue is entirely a fresh issue (Rs. 102.53cr). From the issue net proceeds, the company will be utilizing Rs 80.47cr for funding capital expenditure towards acquisition of six pre-owned aircraft on long term dry lease basis; Rs. 7.28cr for repayment/prepayment, in full or part, certain outstanding borrowings availed by the company; and residual proceeds will be used for general corporate purposes.
* Post-IPO, the P&PG and public shareholders will have 32.47% and 67.53% stake in the company, respectively.
Key competitive strengths:
* Strategic position in a highly regulated and demand-intensive industry
* In-house fleet and existing flight operational experience
* Established network and expertise of the group company, Afcom Holdings Limited in international air cargo operations
* Consistent operational reliability, well-maintained aircrafts and tailored solutions for the clients
* Experienced promoters and senior management with extensive domain knowledge
Risk and concerns:
* Subject to rate fluctuations of Aviation Turbine Fuel (ATF)
* Subject to extensive regulation by the DGCA and compliance with airworthiness requirements
* High dependence on limited number of suppliers and contractors for supply of aircrafts, maintenance services and spare parts for the flight operations
* Revenue generation from a limited number of clients
* Subject to foreign currency fluctuations
* Dependent on cost and availability of airport infrastructure
* Company operations are influenced by seasonality
• High working capital requirements
* Competition
Below are the key highlights of the company:
* The private jet industry in India has experienced significant growth expanding from a market size of Rs. 1,570.80cr in FY19 to Rs. 2,301.60cr in FY24, reflecting CAGR of 8%.
* The industry is expected to continue growing at a CAGR of 13-15% over the next five years. The growth is driven by several factors, such as rising number of high-net-worth individuals, increased need for rapid business travel, and the expansion of economic activities in Tier 2 and Tier 3 cities.
* Flysbs Aviation Limited is a DGCA approved non-scheduled airline operator which provide air charter services from India to elite clientele.
* The 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
* FAL offer comprehensive air chartering services with operations across domestic and international routes.
* FAL caters to travel requirements such as flexible flight schedules, access to exclusive destinations, premium luxury amenities, privacy, and strict security protocols.
* The services of FAL are needed in medical emergencies, key business meetings, promotional events, and other high-priority engagements.
* FAL has successfully flown clients to diverse destinations worldwide spanning six continents.
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SEBI Registration no.: INZ 000160131
