India’s GoAir plans IPO early next fiscal; likely to file preliminary papers in April

Photo: Ramesh Pathania/Mint

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.

The budget carrier, which started operations in 2005, has been contemplating about going public in the last couple of years. The airline, which has also been witnessing frequent churns in the top management, could not come out with the IPO on a few occasions earlier.

“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.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.