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Friday, June 18, 2021

Go Airlines files draft papers for Rs 3,600-cr IPO

In the draft offer document filed with the Securities and Exchange Board of India, the airline, which recently rebranded itself from GoAir to GoFirst, said that it would use the proceeds from the IPO to repay its debts and dues.

By: ENS Economic Bureau | New Delhi |
Updated: May 15, 2021 1:19:30 am
Along with the rebranding of the airline, the company had also announced its focus on becoming an ultra low-cost carrier — becoming India’s first carrier in the segment.

Rs 3,600 crore, and this comes at a time when airlines in the country are bleeding as a result of the Covid19 pandemic. In the draft offer document filed with the Securities and Exchange Board of India, the airline, which recently rebranded itself from GoAir to GoFirst, said that it would use the proceeds from the IPO to repay its debts and dues.

The airline also plans to raise up to Rs 1,500 crore through a pre-IPO placement. Once the shares of the company gets listed on the stock exchanges, which will happen after the SEBI approves the proposal, Go Airlines will become the third operational scheduled airline to trade on Indian bourses — after IndiGo and SpiceJet. Other Indian carriers to have gone public are the now defunct Kingfisher Airlines and Jet Airways.

Along with the rebranding of the airline, the company had also announced its focus on becoming an ultra low-cost carrier — becoming India’s first carrier in the segment.

“We expect competitive conditions in our industry to intensify further as new entrants emerge and as existing competitors seek to extend their operations and flight frequencies over routes that we operate,” the company noted in the draft red herring prospectus.

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