GoAir prepares to raise Rs 400-500 cr through IPO

Mumbai: GoAir, the Wadia group-promoted budget airline, plans to raise Rs 400-500 crore through an initial public offer ( IPO )) to repay debts and buy more aircraft in a booming aviation market.
Mumbai-based airline is in talks with investment banks such as Enam Financials to manage the public offer, said two people close to the development. JM Financial, promoted by ace investment banker Nimesh Kampani, is advisor to the airline. JM and Enam declined comment for the story.
A GoAir spokesperson said: “As a policy, GoAir does not comment on speculative stories.” “This is the right time to raise cash for the airline,” said Amber Dubey, director, (aerospace and defence) at advisory firm KPMG .
The aviation sector sprung back to robust growth after a dismal period of over two years. Airlines had accumulated huge debts on their books and most of them now look to clean up their balance sheets, recast debt and infuse fresh equity. The aviation sector, which grew by 25% in November, is estimated to post a growth between 30-35% in the next quarter, according to aviation analysts.
23/12/10 Manisha Singhal/Economic Times

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Categories: GoAir Dec 2010