InvestorQ : Is Go Air also planning an IPO in the near future?
Dilmini Mercia made post

Is Go Air also planning an IPO in the near future?

Dawn Cherian answered.
2 years ago

GoAir, which is owned by the Nusli Wadia group, is planning a Rs.2500 crore IPO sometime in the early part of the next financial year 2021-22. That is most likely to be scheduled between April and June 2021. The Nusli Wadia also has stakes in marquee companies like Bombay Dyeing and Britannia through its holding company Bombay Burmah Trading Company or BBTC as it is better known.

The IPO funds will be substantially used to drive and fund its expansion plans in the near future. GoAir commenced operations in 2005 but still remains a much smaller player compared to Indigo and Spice Jet in terms of market share. Also, now the big threat would come if Vistara manages to lap up Air India which will give them a leg up in the aviation race. Go Air wants to ensure that it is not left behind in the race.

Go Air has been deliberating over the IPO for last few years. The company is expected to file the draft red herring prospectus or the DRHP in the second week of April 2021. Currently, GoAir flies to a total of 39 destinations, including 10 international locations. Go Air would be obviously looking at the funds to boost its network and reach so as to be able to comamn da better valuation in an industry that is likely to benefit largely in the recovery.

However, the last 1 year has been extremely testing for all airline companies on account of restrictions on travel and tourism. This led to low passenger load factors or PLF and also turned the gap between revenue per average seat kilometre or RASK and the cost per seat kilometre or CASK into negative territory. GoAir will be the third operational airlines to list after Indigo Airways and SpiceJet. Jet is listed but not operational as of now.