Friday, March 19, 2021

GoAir likely to file draft papers for IPO in April to raise Rs 4,000 crore

Kochi: Private airliner GoAir is likely to file a draft red herring prospectus (DRHP) for its initial public offering (IPO) in April to raise around Rs 4,000 crore, reported CNBC-TV18.

"The company is likely to raise Rs 3,500-4,000 crore via issuance of over 25 percent equity. Funds raised will be used towards debt retirement and working capital," the business news channel quoted a source as saying. Adding more, the report says that the IPO may be a fresh issue of shares.

A DRHP or offer document is the preliminary registration document prepared by merchant bankers for prospective IPO-making companies in the case of book building issues.

According to its annual report for FY2020, the Wadia-group promoted company's debt stands at Rs 1,780 crore as on March 2020. Bombay Burmah, Britannia, and Bombay Dyeing have no stake in the airline.

For the IPO, ICICI Securities, Citi, and Morgan Stanley are the lead bankers. Earlier in February, the firm received a credit line of Rs 800 crore from banks to help continue flying amid the COVID-19 pandemic.


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