Flywings Simulator NSE SME IPO review (Not Rated)

•    The company is engaged in providing SEP infrastructure facilities for aviation segment.
•    It marked inconsistency in its overall performance so far with dicey earnings.
•    It is operating on B2B and B2C models and both these segments witnessed inconsistency.
•    Based on its recent financial data, the issue appears greedily priced. 
•    There is no harm in skipping this pricey and dicey IPO.

ABOUT COMPANY:
Flywings Simulator Training Centre Ltd. (FSTCL) is engaged in providing Safety and Emergency Procedures (SEP) infrastructure facilities for aviation training, with a core focus on safety and emergency procedure (SEP) training for cabin and cockpit crew. Headquartered in Gurgaon, it offers a comprehensive portfolio of training modules designed to align with industry standards and regulatory expectations for airline personnel.

Its business model is primarily Business-to-Business (B2B), catering to a distinguished clientele comprising A-rated domestic scheduled airlines, select Indian non-scheduled operators, and regional international carriers. In addition, it operates a limited Business-to-Customer (B2C) vertical under which the company offers training programs aimed at enhancing operational and interpersonal skills relevant to the aviation and hospitality industries. 

Its core competency lies in the delivery of Safety and Emergency Procedures (SEP) training, covering critical areas such as door operations, emergency evacuation, in-flight firefighting, and ditching drills. In addition to core SEP training, the company also offers a broader portfolio of operational and service-oriented training modules primarily under B2C vertical. These include in generic aviation knowledge, in-flight services, basic first aid, inter-departmental coordination, passenger handling, grooming and personal presentation standards, personality development, as well as voice and accent refinement.

FSTCL’s training programs are designed to assist client airlines in maintaining high standards of safety, service delivery, and operational preparedness. Over the past three financial years, it has delivered more than 20,000 individual training modules for aviation professionals through its specialized training infrastructure. Its both B2B and B2C models witnessed inconsistency for the reported periods. As of November 26, 2025, it had 24 employees on its payroll.

ISSUE DETAILS/ CAPITAL HISTORY:
The company is coming out with its maiden book building route combo IPO of 2986800 equity shares of Rs. 10 each to mobilize Rs. 57.05 cr. at the upper cap. The IPO comprises of 2512800 fresh equity shares (worth Rs. 47.99 cr. at the upper cap) and an Offer for Sale (OFS) of 474000 equity shares (worth Rs. 9.05 cr. at the upper cap).  The company has announced a price band of Rs. 181 – Rs. 191 per share. The minimum application to be made is for 1200 shares and in multiples of 600 shares thereon, thereafter. The issue opens for subscription on December 05, 2025, and will close on December 09, 2025. The IPO constitute 29.35% of the post-IPO paid-up capital of the company. The shares will be listed on NSE SME Emerge. From the net proceeds of the IPO, it will utilize Rs. 35.34 cr. for capex on pilot training equipments, and the rest for general corporate purposes. 

The IPO is jointly lead managed by Sobhagya Capital Options Pvt. Ltd., and Gretex Corporate Services Ltd., while Bigshare Services Pvt. Ltd. is the registrar to the issue. Gretex Share Broking Ltd. is the market maker as well as a syndicate member. The issue is underwritten to the tune of 34.05% by Gretex Share Broking, 15.03% by Sobhagya Capital Options, and 50.02% by Gretex Corporate Services.

Having issued initial equity capital at par, the company issued further equity shares in the price range of Rs. 200 – Rs. 18018 per share between January 2024 and April 2024. It has also issued bonus shares in the ratio of 110 for 1 in May 2024. The average cost of acquisition of shares by the promoters is Rs. NA, and Rs. 1.51 per share.

Post-IPO, company’s current paid-up equity capital of Rs. 7.66 cr. will stand enhanced to Rs. 10.18 cr. Based on the upper band of the IPO pricing, the company is looking for a market cap of Rs. 194.38 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income / net profit, of Rs. 10.44 cr. / Rs. 4.16 cr. (FY23 - standalone), Rs. 22.60 cr. / Rs. 10.74 cr. (FY24 - standalone), Rs. 23.64 cr. / Rs. 10.92 cr. (FY25 - consolidated). For Q1 of FY26 (consolidated) ended on June 30, 2025, it earned a net profit of Rs. 1.40 cr. on a total income of Rs. 4.24 cr. It posted static top and bottom lines for FY24 and FY25, while for Q1 of FY26, it indicates degrowth in top and bottom lines. The profit margins from FY23 to FY25 raise eyebrows and concern over its sustainability going forward.

For the last three fiscals, the company has reported an average EPS of Rs. 27.39, and an average RoNW of – (22.99) %. The issue is priced at a P/BV of 3.62 based on its NAV of Rs. 52.72 per share as of June 30, 2025, but its post-IPO NAV data is missing from the offer documents.

If we attribute FY26 annualized super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 34.72, and based on FY25 earnings, the P/E stands at 17.80. The IPO appears to be greedily priced. 

For the reported periods, the company has posted PAT margins of 40.08% (FY23), 48.37% (FY24), 54.02% (FY25), 33.98% (Q1-FY26), and RoCE margins of 57.07%, 43.36%, 28.62%, 4.26%, respectively for the referred periods.

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It will adopt a prudent dividend policy, based on its financial performance and future prospects. 

COMPARISON WITH LISTED PEERS:
As per the offer document, the company has no listed peers to compare with.

MERCHANT BANKER’S TRACL RECORD:
This is the 5th mandate from Sobhagya Capital in the last three fiscals. Out of the last 3 listings, 2 opened at discount and the rest with premium of 6.06% on the listing date.

This is the 25th mandate from Gretex Corporate in the last three fiscals. Out of the last 11 listings, 1 listed at discount, and the rest with premium ranging from 0.04% to 22.81% on the listing date.

While Sobhagya Capital has a poor track record, Gretex Corporate has an average track record.