Flysbs Aviation

• Flysbs Aviation is coming out with an initial public offering (IPO) of 45,57,000 equity shares in a price band Rs 210-225 per equity share.
• The issue will open on August 1, 2025 and will close on August 5, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 21.00 times of its face value on the lower side and 22.50 times on the higher side.
• Book running lead manager to the issue is Vivro Financial Services.
• Compliance Officer for the issue is N Saptharishi.

Profile of the company

Flysbs Aviation 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 is 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.

The company currently provides private air-chartering services in India with operating base located in Chennai, Tamil Nadu. It offers comprehensive air chartering services, operating dynamically across domestic and international routes. 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 their unique travel requirements.

During its initial years of operation, it carried out private air-chartering services through a wet lease or quasi charter model wherein the lessor of the aircraft provides the aircraft with the complete crew, maintenance and insurance requirements. As the company matured and gained experience, it has imported and registered an aircraft under dry-lease arrangement on long term basis, whereby the lessor only provides the aircraft. Under the dry lease model, the company operates a 13 seater Embraer Legacy 600 aircraft.

Proceed is being used for:

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

Industry Overview

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.

The private jet industry in India is witnessing rapid growth, driven by increasing demand from high-net-worth individuals (HNWIs), corporate executives, and a growing preference for personalized, flexible travel options. Factors such as the expansion of business operations, time efficiency, and concerns over commercial aviation delays have contributed to the rise in private jet usage. India's burgeoning economy has also led to an increasing number of private jet charters and ownership. Additionally, post-pandemic, there has been a marked shift toward private flying due to safety and health concerns. The private jet industry in India has experienced significant growth, expanding from a market size of $187 million in FY19 to $274 million in FY24, reflecting a healthy compound annual growth rate (CAGR) of 8%. This growth can be attributed to several factors, including the rising number of high-net-worth individuals (HNWIs), the increased need for rapid business travel, and the expansion of economic activities in Tier 2 and Tier 3 cities.

Currently, private jet industry market in India has 116 non-scheduled operators as of FY24. Going further, the market is expected to see continuous growth as private aviation becomes more accessible and streamlined. Nonscheduled operators in aviation refer to airlines or aviation companies that do not operate regular flights on fixed routes or schedules. These operators provide charter services, often catering to business executives, celebrities, or high-net-worth individuals, and are strongly linked to the private jet industry. The flexibility of non-scheduled operations allows clients to customize travel itineraries, offering privacy, convenience, and time-saving benefits that are essential in the private aviation market, making them a crucial segment of the private jet industry.

Pros and strengths

Strategic positioning in a high entry barrier industry: The company is strategically positioned within a highly regulated and demand-intensive industry, where significant barriers to entry protects existing players like it from potential competition. Entering this industry requires extensive experience, considerable time, and substantial investment to meet stringent regulatory requirements, secure necessary clearances, and establish substantial infrastructure. For instance, the operators must adhere to strict guidelines regarding aircraft usage, safety management, and operational limits. Further, airport slot allocations are controlled by the Airport Authority of India, which is crucial for managing take-off and landing schedules, particularly at high-traffic airports.

In-house fleet and existing flight operational experience: To meet the operational requirements of its clients, apart from using the 13 seater Embraer Legacy 600 aircraft on dry lease basis, it also uses Dassault Falcon 2000, Bombardier Challenger 605, Bombardier Global 6000 or any equivalent aircraft on wet lease / quasi charter basis from large international operators of business jets. These aircrafts are considered as benchmark in their class for performance, comfort, convenience and reliability. These aircrafts have an endurance of flying 6 hours to 16 hours on non-stop basis, which provides it an opportunity to offer the best suitable aircraft depending on its client’s itinerary and affordability.

Operational excellence, aircraft maintenance and tailored solutions for its clients: It has established required processes and a dedicated team to ensure seamless and reliable operations. As on March 31, 2025, its team comprises of 22 permanent employees and has engaged 2 persons on retainership basis which includes 8 operating crew (pilot and cabin crew), for efficiently carrying out its business operations. It has also entered into agreement with a DGCA approved MRO service provider for securing comprehensive maintenance and overhaul services for its fleet of aircraft. With access to their fully equipped MRO facility in Bangalore, Karnataka it benefits from an established infrastructure, ensuring that its fleet maintains its operational efficiency. 

Risks and concerns

Maximum revenue comes from limited customers: The company has garnered 90.54%, 93.80% and 90.47% of its total revenue from top 5 customers in FY25, FY24 and FY23 respectively. A significant portion of its revenues may continue to come from its key clients. Although the composition and mix of these clients vary from year to year, any decision by one or more of them to cease or significantly reduce their business with it could lead to a decline in revenues, potentially impacting its business, operational results, cash flows, and financial condition adversely.

Dependent on few suppliers for key spare parts: The company is dependent on limited number of suppliers and contractors for supply of key spare parts and consumable items for operating its aircrafts. It has not made any long-term supply arrangement with its suppliers. In an event where its suppliers and contractors are unable to deliver it the required resources in a time-bound manner it may have a material adverse effect on its business operations and profitability.

Operating results may fluctuate due to seasonality: The company’s operations are influenced by seasonality. In India, certain periods of the year align with increased activity in industries such as tourism, sports (e.g., Indian Premier League and Indian Super League), weddings, and elections, which positively impact its operations. Conversely, unfavorable seasons, such as the monsoon period, tend to affect operations adversely due to less optimal conditions. With a significant proportion of fixed cost obligations, these seasonal variations are likely to result in fluctuations in its quarterly results of operations within a fiscal year.

Outlook

FlySBS Aviation, formerly known as FlySBS Aviation, is an Indian aviation company specializing in private jet services. The company is headquartered in Chennai, Tamil Nadu, and operates under the legal jurisdiction of India. The company has in-house fleet and existing flight operational experience. Also, the company has strategic positioning in a high entry barrier industry. On the concern side, the company has derived a significant portion of its revenue from a limited number of clients. Its inability to acquire new clients or loss of all or a substantial portion to any of its major client, for any reason and/or, continued reduction of the business from them, could have a material adverse impact on its business, results of operations, financial condition and cash flows.

The company is coming out with a maiden IPO of 45,57,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 210-225 per equity share. The aggregate size of the offer is around Rs 95.70 crore to Rs 102.53 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased by 82.08% from Rs 10,648.69 lakhs in the financial year ended March 31, 2024 to Rs 19,389.56 lakhs in the financial year ended March 31, 2025. The increase in revenue from operation is primarily due to an increase in total chargeable flying time from 1,486 hours in the financial year 2024 to 2,600 hours in the financial year 2025. Moreover, the profit after tax of the company increased from Rs 1,124.92 lakh in fiscal 2024 to Rs 2,840.61 lakh in fiscal 2025.

The company is committed to further expanding its fleet through the acquisition of aircraft under the dry lease model. In this model, the aircraft lease rental is paid to the lessor and all other operating expenses such as crew remuneration, maintenance, repairs, insurance related to the aircraft and other variable expenses such as fuel, flight planning, ground handling etc., are undertaken by it. This provides it with better operational control over other ancillary cost such as maintenance, cost of crew and insurance which will improve its profitability, operational efficiency and flexibility to operate more flight schedules.