Flywings Simulator Training Centre IPO Overview
Aviation Safety & Emergency Procedures (SEP) training provider raising ₹57.05 cr via fresh issue ₹47.99 cr + OFS ₹9.05 cr of 29.87L shares. Price: ₹181-191. Lot: 600 shares (₹2.29L min, 1,200).
Funds for pilot training equipment, 100% foreign subsidiary, corporate purposes.
Founded 2011, 14 years old. Gurgaon-based. DGCA recognized. 4 facilities, 7 full-scale simulators (A-320 CEET, Boeing 787 door, fire, water).
10+ airline clients: Vistara, IndiGo, SpiceJet, Air India, Himalaya, WOW. 6 active contracts, 20,000+ training programs. B2B (airlines) + B2C (cabin crew, ground). 24 employees.
Lead: Sobhagya, Gretex. Competes with CAE, CAE Oxford, Indigo Cadet Program, IndiGo Training.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | SME |
| IPO Open Date | 5 December 2025 (Friday) |
| IPO Close Date | 9 December 2025 (Tuesday) |
| Anchor Investor Date | 4 December 2025 (Thursday) – Completed |
| Allotment Date | 10 December 2025 (Wednesday) – Expected |
| Credit to Demat | 11 December 2025 (Thursday) – Expected |
| Refund Initiation | 10 December 2025 (Wednesday) – Expected |
| Listing Date | 12 December 2025 (Friday) – Tentative |
| Price Band | ₹181 – ₹191 per share |
| Face Value | ₹10 per share |
| Lot Size | 600 shares |
| Min Investment (Retail) | ₹2,29,200 (1,200 shares / 2 lots at upper band) |
| sHNI Investment | TBD |
| Issue Size | ₹57.05 crore total (at upper band) |
| Fresh Issue | ₹47.99 crore (84.1%) – 25,12,600 shares |
| Offer for Sale (OFS) | ₹9.05 crore (15.9%) – 4,74,200 shares by promoters |
| Total Shares Offered | 29,86,800 equity shares (29.87 lakh) |
| Listing | NSE SME (Emerge Platform) |
| Pre-Issue Shares | 76,64,328 shares |
| Post-Issue Shares | 1,06,51,128 shares (including fresh issue) |
| Post-Issue Market Cap | ~₹203-204 crore (at upper price band) |
| P/E Ratio | ~11-14x (FY25 basis – Reasonable to moderate) |
| EPS | Pre-issue: ₹14.25 (FY25), Post-issue: ~₹10.26 (annualized Jun 2025) |
Issue Break-up
| Category | Allocation | Shares |
| QIB (Qualified Institutional Buyers) | 14,17,200 shares (ex-anchor: 5,67,000) | 47.46% (18.98% ex-anchor) |
| NII (Non-Institutional Investors) | 4,26,600 shares | 14.29% (15% allocation) |
| Retail Individual Investors | 9,93,600 shares | 33.27% (35% allocation) |
| Anchor Investors | 8,50,200 shares | 28.47% |
| Market Maker | 1,49,400 shares | 5.00% |
Note: SME IPO with anchor allocation (8,50,200 shares, 28.47%). Standard SME allocation: 50% QIB total, 35% retail, 15% NII.
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹47.99 crore gross / ~₹43-44 cr net after issue expenses ~₹4-5 cr) will be used for:
- Investment in Foreign Entity to Make 100% Foreign Subsidiary Company – Amount TBD
- Setting up wholly owned international subsidiary
- Expansion into international aviation training markets
- Possibly in Middle East, Southeast Asia, or Africa
- Accessing global airline clients beyond India
- Capital Expenditure Towards Pilot Training Equipment – Significant portion
- Acquiring new flight simulators (high capex – ₹10-50 cr each)
- Advanced training devices (ATDs)
- Emergency evacuation trainers
- Fire fighting equipment, water survival rigs
- Technology infrastructure upgrades
- General Corporate Purposes – Balance amount
- Working capital, marketing, strategic initiatives
OFS Proceeds (₹9.05 crore):
- Goes to selling promoters
- 4,74,200 shares (15.9% of issue) being sold
- Partial exit/liquidity for founders
Strategic Focus:
- International expansion via 100% foreign subsidiary (strategic growth)
- Major capex on simulators and training equipment (capacity expansion)
- 84% fresh proceeds for genuine growth vs 16% promoter exit
Note: 84% fresh issue for company, 16% OFS by promoters.
Lead Managers & Registrar
Book Running Lead Managers (BRLMs – 2 Joint Lead Managers):
- Sobhagya Capital Options Private Limited
- Website: www.sobhagyacap.com
- Gretex Corporate Services Limited
- Managing Director & CFO: Alok Harlalka
Registrar:
- Bigshare Services Private Limited
- Phone: +91-22-6263 8200
- Email: [email protected]
- Website: www.bigshareonline.com
Market Maker:
- To be disclosed
Promoters & Management
Key Promoters/Founders:
- Mr. Rupal Sanjay Mandavia – Managing Director & CFO
- Founder and key leadership
- Driving company’s growth and IPO journey
- Quoted in IPO press release expressing vision
- Selling shares in OFS – Partial exit
Company History:
- Incorporated June 16, 2011 as “Flywings Simulator Training Centre Private Limited” (14 years old)
- Registrar of Companies: Maharashtra, Mumbai
- Converted to Public Limited: 2025 (just before IPO)
- DRHP Filed: August 2, 2025
- Evolution: From small training center to DGCA-recognized aviation training provider with 7 simulators
- Infrastructure: 4 aircraft training facilities equipped with 7 full-scale simulators
- Client Base: 10+ airline clients (6 active contracts), 20,000+ training programs delivered
- Workforce: 24 employees (as of June 30, 2025) – lean team
- Recognition: DGCA (Directorate General of Civil Aviation) recognized training centers
Company Contact:
- Registered Office: Ground Floor, Killa No. 13, Begumpur Khatola, Sector 35, Sadar Bazar, Gurgaon – 122001, Haryana
- Phone: 0124-4957945
- Email: [email protected]
- Website: www.fwstc.co.in
COMPANY OVERVIEW
Establishment & Background:
- Incorporated on June 16, 2011 (14 years old)
- Industry: Aviation Training – Safety and Emergency Procedures (SEP) Simulation
- Headquartered in Gurgaon (Gurugram), Haryana
- DGCA Recognized: Certified by India’s aviation regulator
- Workforce: 24 employees (lean, specialized team)
- Focus: Cabin crew and cockpit crew safety training
Business Model:
- Simulation-Based Aviation Training Provider specializing in Safety and Emergency Procedures (SEP)
- Two Business Models:
- B2B (Business-to-Business – Primary Revenue Driver):
- Training services to airlines under structured Training Service Agreements (TSAs)
- Serving top domestic airlines: Vistara, IndiGo, SpiceJet, Air India
- International clients: Himalaya Airlines (Nepal), WOW Air (Iceland)
- Select non-scheduled operators
- 6 active airline contracts providing recurring revenue
- 10+ airline clients overall
- B2C (Business-to-Consumer):
- Direct training to aspiring cabin crew members
- Ground staff training
- Individual professionals seeking aviation careers
- B2B (Business-to-Business – Primary Revenue Driver):
- Training Programs:
- Safety and Emergency Procedures (SEP): Core offering
- Aviation procedures and protocols
- In-flight service training
- First aid and medical emergencies
- Safety and emergency evacuation
- Fire fighting procedures
- Water survival and ditching
- Personality development and grooming
- Customer service excellence
- Training Infrastructure:
- 4 aircraft training facilities across locations
- 7 full-scale flight simulators/training devices:
- A-320 CEET (Cabin Emergency Evacuation Trainer)
- Boeing 787 door trainers
- Fire trainers (firefighting simulation)
- Water survival rigs (ditching drills)
- Other emergency equipment simulators
- Advanced training devices meeting DGCA standards
- Scale Metrics:
- 20,000+ training programs delivered (cumulative)
- Under structured Training Service Agreements
- Predictable and recurring revenue from airline contracts
- Growing capacity utilization
Market Position:
- Positioned as specialized aviation SEP training provider in India’s growing aviation training market
- Indian aviation training market: Growing with fleet expansion, new airlines, pilot shortage
- India’s commercial aviation boom: Domestic airlines ordering 1,000+ aircraft (IndiGo 500, Air India 470, Akasa, others)
- Massive pilot and cabin crew demand: Need for 10,000+ pilots, 20,000+ cabin crew over next decade
- Competing with established players:
- CAE Inc. (Canada): Global leader, operates CAE India training centers
- CAE Oxford Aviation Academy: Pilot training specialist
- Airline-owned training: IndiGo Cadet Program, Air India Training, others
- Regional training centers and DGCA-approved institutes
- Differentiation: Focus on SEP (safety/emergency), full-scale simulators, airline partnerships
Operations:
- Headquarters: Gurgaon, Haryana (NCR Delhi – aviation hub proximity)
- 4 Training Facilities: Locations not explicitly disclosed but likely near major airline bases
- 7 Full-Scale Simulators: High capex assets (₹10-50 cr each)
- DGCA Compliance: All training programs aligned with regulatory requirements
- Technology: Advanced simulation equipment, training management systems
- Team: 24 specialized professionals – trainers, simulators operators, support staff
Company Strengths
- Strong Profitability – ₹10.92 Cr PAT in FY25 on ₹23.64 Cr Revenue (46% Margin!):
- FY25: ₹23.64 cr revenue, ₹10.92 cr PAT (46.2% PAT margin!) – exceptionally high profitability
- EBITDA: ₹13.51 cr (57.1% EBITDA margin)
- Q1 FY26: ₹4.24 cr revenue, ₹1.38 cr PAT (32.5% PAT margin)
- Asset-light model with high margins typical of training services
- Strong cash generation potential
- Demonstrates operational efficiency and pricing power
- Marquee Airline Clients – Vistara, IndiGo, SpiceJet, Air India:
- Domestic A-rated airlines: Vistara (now merged with Air India), IndiGo (largest Indian carrier), SpiceJet, Air India
- International: Himalaya Airlines (Nepal), WOW Air (Iceland)
- 10+ airline clients with 6 active contracts
- Blue-chip client roster validates training quality
- Recurring revenue from structured Training Service Agreements
- Long-term relationships with India’s leading carriers
- Advanced Simulator Infrastructure – 7 Full-Scale Training Devices:
- 4 aircraft training facilities equipped with 7 full-scale simulators
- A-320 CEET, Boeing 787 door trainers, fire trainers, water survival rigs
- High-fidelity equipment meeting DGCA standards
- Competitive moat – simulators are high capex (₹10-50 cr each)
- Difficult for competitors to replicate without significant investment
- Capacity to train large volumes
- DGCA Recognition – Regulatory Approval & Credibility:
- DGCA (Directorate General of Civil Aviation) recognized training centers
- Regulatory approval mandatory for commercial aviation training
- Ensures training quality, curriculum compliance, safety standards
- Credibility with airlines requiring DGCA-certified programs
- Barrier to entry for new competitors
- Recurring Revenue Model – 20,000+ Programs Under TSAs:
- 20,000+ training programs delivered under structured Training Service Agreements
- Predictable recurring revenue from long-term airline contracts
- Visibility into future revenues
- Annuity-style business model reducing volatility
- Repeat business from crew recurrent training (mandatory annual/periodic)
- Strategic Expansion – 100% Foreign Subsidiary Planned:
- IPO proceeds funding 100% foreign subsidiary
- International market expansion strategy
- Accessing global airline clients beyond India
- Middle East, Southeast Asia, Africa offer growth opportunities
- Diversifying beyond India’s market risks
- Structural Aviation Tailwinds – India’s Fleet Expansion:
- Massive aircraft orders: IndiGo 500+, Air India 470, Akasa Air, others = 1,000+ aircraft pipeline
- Each aircraft needs 4-6 crew sets (pilots + cabin crew) = 4,000-6,000 crew sets needed
- Pilot shortage globally and in India
- 10,000+ pilots, 20,000+ cabin crew required over next decade
- Mandatory recurrent training every 6-12 months = continuous demand
- Government’s UDAN scheme expanding regional aviation
- Multi-year growth runway
- Lean Operations – 24 Employees, High Per-Employee Revenue:
- Just 24 employees generating ₹23.64 cr revenue (FY25) = ₹98.5 lakh revenue per employee!
- Asset-light model with simulators and contract trainers
- Low overhead costs
- Scalable without proportional headcount growth
- High operational efficiency
- Reasonable Valuation – P/E ~11-14x:
- Post-issue P/E: ~11-14x (based on FY25 and annualized Q1 FY26 earnings)
- Reasonable for high-margin training business with growth tailwinds
- Lower than aggressive SME IPO pricings (25-35x)
- Profitable business at attractive valuation
- Margin of safety vs overpriced SMEs
- Strong Anchor Support – Anchor Portion Completed:
- Anchor allocation: 8,50,200 shares (28.47% of issue)
- Institutional backing validates fundamentals
- Provides stability and confidence
- Reduces under-subscription risk
Key Risks & Challenges
- GMP Not Started – Market Sentiment Unclear:
- Grey Market Premium not yet active as of Dec 4, 2025
- Unable to gauge retail investor enthusiasm
- No indication of expected listing gains
- Opens Dec 5 without GMP signal – uncertainty
- Could indicate lack of awareness or lukewarm interest
- Extreme Client Concentration – 6 Active Airline Contracts:
- Only 6 active airline contracts providing majority of revenue
- Likely 70-90% revenue from top 3-5 airline clients
- Loss of even one major airline contract (IndiGo, Air India) = severe revenue impact
- No long-term contract guarantees – Training Service Agreements can be terminated
- Airlines could:
- Build in-house training (like IndiGo Cadet Program)
- Switch to CAE or other providers
- Reduce training spend during financial stress
- Customer bargaining power very high
- Small Scale – 24 Employees, 4 Facilities, 7 Simulators:
- Very small organization with just 24 employees
- Only 4 training facilities with 7 simulators
- Competing against CAE with dozens of simulators globally
- Limited capacity to serve multiple large airline contracts simultaneously
- Organizational bandwidth constrained
- Difficulty scaling quickly
- Cyclical Aviation Industry – Vulnerable to Downturns:
- Aviation highly cyclical – COVID-19 showed extreme vulnerability
- Airline bankruptcies, capacity cuts = immediate training demand collapse
- Recession, oil price spikes, geopolitical tensions impact airlines
- Airlines cut training budgets first during financial stress
- Cannot sustain during prolonged industry downturns
- SpiceJet (one of clients) facing financial difficulties
- High Capex Intensity – Simulators Cost ₹10-50 Cr Each:
- Full-flight simulators extremely expensive (₹10-50 crore per unit)
- Continuous capex needed to stay current with new aircraft types
- Fleet changes (A320neo, Boeing 737 MAX, new widebodies) require new simulators
- IPO proceeds for “pilot training equipment” = major ongoing capex burden
- Return on investment uncertain if utilization doesn’t scale
- Stranded assets if airline contracts end
- Intense Competition – CAE, Airline In-House Programs:
- CAE Inc.: Global giant with massive scale, technology, resources
- CAE Oxford Aviation Academy: Leading pilot training brand
- Airline-owned training: IndiGo, Air India building in-house capabilities
- Airlines prefer integrated training from larger providers
- Price-based competition on TSA renewals
- Difficult to compete with CAE’s global network and brand
- Regulatory Risks – DGCA Compliance, Licensing:
- Subject to strict DGCA regulations
- Training curriculum, equipment, instructor certification requirements
- Regulatory violations = license suspension or revocation
- Business collapses if DGCA recognition lost
- Continuous compliance costs
- Changing regulations requiring curriculum/equipment updates
- Technology Disruption – VR/AR Training, Remote Simulation:
- Virtual Reality (VR) and Augmented Reality (AR) emerging for training
- Lower-cost alternatives to full-flight simulators
- Remote simulation reducing need for physical facilities
- Airlines may adopt hybrid training models
- Technology investments needed to stay relevant
- Risk of simulator infrastructure becoming obsolete
- Promoter Partial Exit – ₹9.05 Cr OFS (15.9%):
- Promoter(s) selling ₹9.05 cr (15.9% of issue)
- Founder Rupal Mandavia taking partial liquidity
- Questions: Why exit if aviation boom and international expansion ahead?
- May signal reduced confidence or valuation concerns
- Only 84% proceeds for genuine company growth
- Limited Track Record – Financials Volatile:
- Standalone assets: ₹16.38 cr (FY23) → ₹44.95 cr (FY24) – sudden jump
- PAT: ₹4.16 cr (FY23) → ₹10.74 cr (FY24) – dramatic increase
- Recent strong performance may not be sustainable
- Pre-IPO earnings inflation typical in SME space
- Need longer track record to assess consistency
- Geographic Concentration – India Only (Pre-Subsidiary):
- Currently 100% revenue from India
- Dependent on Indian aviation growth, regulatory environment
- Government policy changes, aviation taxes, slot restrictions impact demand
- Foreign subsidiary planned but not yet operational
- Execution risk in international expansion
- Pilot Shortage May Not Translate to Training Revenue:
- While pilot shortage exists, airlines may:
- Hire foreign pilots (lower cost)
- Reduce domestic capacity
- Delay fleet expansion
- Training demand not guaranteed despite fleet orders
- Airlines may consolidate training with fewer providers
- Aircraft delivery delays push out training needs
CONCERNS: GMP not started (sentiment unclear), extreme client concentration (6 active airline contracts), small scale (24 employees, 4 facilities), cyclical aviation industry (COVID showed vulnerability), high capex (simulators ₹10-50 cr each), intense competition (CAE global giant), regulatory risks (DGCA compliance), promoter partial exit (₹9.05 cr OFS, 15.9%), limited track record (financials volatile).
POSITIVES: Strong profitability (46% PAT margin FY25!), marquee clients (Vistara, IndiGo, SpiceJet, Air India), 7 full-scale simulators, DGCA recognition, recurring revenue (20,000+ programs under TSAs), international expansion (foreign subsidiary), structural tailwinds (1,000+ aircraft orders, 10,000+ pilots needed), lean operations (high revenue/employee), reasonable P/E (~11-14x), anchor support completed. This is a specialized aviation training play betting on India’s commercial aviation boom – suitable for investors bullish on sector growth willing to accept client concentration and cyclicality risks.
Disclaimer: This information is based on publicly available sources including SEBI RHP filings and company press releases. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. SME investments carry higher risks than mainboard listings.
