Monday, February 08, 2021

GoAir plans IPO to raise Rs 3,000 crore

Mumbai: GoAir, the budget airline of the Wadia Group, plans to launch its initial public offering soon, two people said, reviving a share-sale plan that’s been deferred several times since 2017.

The exercise of taking the airline public to raise about ₹3,000 crore has started, with the appointment of Citigroup, ICICI Securities and Morgan Stanley as the bankers, a top Wadia group official said.

“We are looking at raising long-term funds and reducing debt. We have been told that given the current market sentiment, it is the right time to raise resources,” the official said. The Wadia Group will likely dilute 30% of its stake in GoAir.

A GoAir spokesperson, responding to ET’s query, said the company does not comment on speculation.

The low-fare carrier has been struggling to stay afloat owing to rising debt, limited bank funding and a hit on operations due to the Covid-19 pandemic. In August, it appointed Kaushik Khona as its chief executive officer, replacing industry veteran Vinay Dube.

GoAir, which had an 8.6% share of passengers carried, operates 300-plus daily flights. It has carried 80 million passengers since starting in 2005. The airline flies to 36 destinations, including 27 domestic cities.

08/02/21 Kala Vijayaraghavan & Rajesh Mascarenhas/Economic Times

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