No-frills airlineGoAir plans to come out with a ₹2,500 crore-initial share sale early next fiscal, according to sources, news agency PTI reported.
GoAir has been working on expansion plans and an Initial Public Offer (IPO) will help in raising funds. GoAir flies to 39 destinations, including 10 international ones.
“GoAir is gearing up to raise funds to the tune of around ₹2,500 crore from public investors and is likely to initiate this process with the filing of DRHP (Draft Red Herring Prospectus) around the second week of April,” one of the sources said told PTI.
Consultations are progressing with ICICI Securities on the modalities of the proposed IPO, the sources said.
According to them, Citigroup and Morgan Stanley are also involved in helping GoAir with its IPO plan.
In response to an e-mail query sent to the airline’s CEO Kaushik Khona, a spokesperson said, “as a policy, GoAir does not comment on market speculation”.
SpiceJet and IndiGo are the two Indian carriers which are trading on the bourses. Jet Airways, which is a listed company, was shuttered in April 2019 due to financial woes. Kingfisher Airlines, which went belly up in 2012, was also listed on the exchanges.
In the case of GoAir, there have been frequent changes in management over the years. Last week, Jeh Wadia, the airline’s promoter, resigned as Managing Director while former Spirit Airlines CEO Ben Baldanza was appointed as its Vice Chairman. Baldanza had successfully led Spirit Airlines IPO in 2011.
“I am excited to be part of GoAir’s next stage of journey. This gives me the opportunity to apply my years of airline experience in the vibrant and fast-growing market of India to create enduring value for all stakeholders,” Baldanza said on his appointment to the new position in GoAir
In recent months, many companies have hit the capital market with their IPOs amid business activities slowly normalising after the pandemic blow.
This article was first published on livemint.com.