Flywings Simulator Training Centre Limited Makes Modest Debut with 2.09% Premium, Lists at ₹195.00 Against Weak Subscription

Flywings Simulator Training Centre Limited, incorporated in 2011 providing aviation training specializing in comprehensive commercial aircraft training covering aviation procedures, in-flight services, first aid, safety, emergency evacuation, personality development serving A-rated domestic airlines including Vistara, Indigo, SpiceJet, Air India, and international airlines like Himalaya Airlines and WOW Air using advanced training devices including A-320 CEET, Boeing 787 door trainers, fire trainers, and water survival drills delivering over 20,000 individual training modules operating from Gurgaon, made a modest debut on NSE SME on December 12, 2025. After closing its IPO bidding between December 5-9, 2025, the company commenced trading with a premium of 2.09% opening at ₹195.00 and touched ₹200.00 (up 4.71%).

Flywings Simulator Training Centre Limited Listing Details

Flywings launched its IPO at ₹191 per share with minimum investment of 1,200 shares costing ₹2,29,200. The IPO received weak response with subscription of 1.67 times - individual investors at 0.97 times (undersubscribed), QIB at 1.56 times, NII at 3.47 times.

First-Day Trading Performance

Listing Price: Flywings opened at ₹195.00 representing premium of 2.09% from issue price of ₹191.00, touched high of ₹200.00 (up 4.71%) and low of ₹193.00 (up 1.05%), with VWAP at ₹195.32.

Growth Drivers and Challenges

Growth Drivers:

Strong Profitability Metrics: Exceptional ROE of 34.75%, robust ROCE of 28.62%, RoNW of 34.75%, outstanding PAT margin of 54.02%, impressive EBITDA margin of 66.85%.

Strategic Infrastructure: Simulator infrastructure aligned with majority of Indian fleet types providing competitive advantage, recurring revenue streams supported by high switching costs, regulatory compliance model enabling operational flexibility, strategic Gurgaon location with significant entry barrier advantages.

Market Positioning: Serving esteemed clients including major domestic airlines Vistara, Indigo, SpiceJet, Air India, and international carriers, delivered over 20,000 individual training modules over past three years, advanced training devices including A-320 CEET and Boeing 787 door trainers.

Challenges:

Financial Inconsistency: Analyst categorically states company marked inconsistency in overall performance with dicey earnings, both business-to-business and business-to-consumer segments witnessed inconsistency, revenue of ₹23.64 crore in FY25 compared to ₹22.60 crore in FY24 showing minimal growth.

Poor Market Reception: Modest listing premium of just 2.09%, weak subscription of 1.67 times with retail investors at 0.97 times (undersubscribed).

Operational Limitations: Issue appears greedily priced according to analyst, post-IPO paid-up equity base indicates longer gestation for mainboard migration, debt-to-equity of 0.37, significant promoter holding at 85.69% limiting free float, operating in specialized aviation training niche vulnerable to airline industry cycles and regulatory changes, post-issue P/E of 35.22x appears elevated despite strong margins.

Utilisation of IPO Proceeds

Capacity Expansion: ₹35.34 crore for capital expenditure towards pilot training equipment expanding training infrastructure and capabilities to serve growing aviation sector demand, plus general corporate purposes.

Financial Performance

Revenue: ₹23.64 crore for FY25, minimal growth from ₹22.60 crore in FY24, reflecting challenges in scaling aviation training business despite strong client relationships with major airlines, highlighting financial inconsistency concerns raised by analyst.

Net Profit: ₹10.92 crore in FY25, growth from ₹10.74 crore in FY24, though exceptional PAT margin of 54.02% demonstrates high profitability per training module delivered, sustainability questioned given revenue inconsistency.

Financial Metrics: Exceptional ROE of 34.75%, robust ROCE of 28.62%, debt-to-equity of 0.37, RoNW of 34.75%, outstanding PAT margin of 54.02%, impressive EBITDA margin of 66.85%, price-to-book of 3.75x, post-issue EPS of ₹5.42, elevated P/E of 35.22x, net worth of ₹39.02 crore, total borrowings of ₹18.09 crore, and market capitalisation of ₹196.42 crore.