Thursday, June 27, 2019

Wadia Group-controlled GoAir revives IPO plans; looks to raise Rs 1,728-2,074 crore

Diversified conglomerate Wadia Group's budget carrier GoAir has now revived plans for an initial public offering as it looks to raise capital, six independent sources with knowledge of the matter told Moneycontrol.

"GoAir is back in the market and is in talks with investment banks like Citi and Morgan Stanley as well as law firms and will soon finalise its advisors. It is keen on an initial public offer as part of which it plans to raise between Rs 1,728-2,074 crore, though a final call has not been taken on the issue size as the discussions are at a preliminary stage," said one of the sources.
Current market leader IndiGo's public offering in October 2015 was the last IPO in the Indian aviation sector and the company's share price has doubled since then.
The current state of the Indian aviation market is one of the reasons GoAir wants to list itself on the bourses.
"The airline needs to raise money as it has ordered 144 Airbus A320 Neos which are more fuel efficient than its current fleet.  There is a void in the market with Jet Airways being grounded and with IndiGo and SpiceJet having high valuations, the GoAir management feels it can get the same multiple," added a second source.
"Considering the proposed size of the IPO, GoAir may also look at tapping overseas institutional investors as well. In terms of timing, as of now, based on the pace of discussions and documentation, the earliest the issue can be launched in December or during the January to March time-frame," a third source told Moneycontrol.
27/06/19 Ashwin Mohan/
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