Friday, March 26, 2021

GoAir plans to file for IPO in next fiscal, aims to raise Rs 2,500 crore

Budget carrier GoAir is planning to come out with an initial public offer (IPO) of Rs 2,500 crore early next fiscal, news agency PTI reported.

The PTI report, quoting a source, stated that GoAir may initiate the process with the filing of the draft red herring prospectus (DRHP) around the second week of April, adding that it was consulting with ICICI Securities on the modalities of the proposed IPO.

According to the sources, even Citigroup and Morgan Stanley are helping the airline for its IPO.

However, a GoAir spokesperson denied commenting on the speculation, in response to an e-mail query sent to the airline's chief executive officer, Kaushik Khona.

A few days ago, a CNBC-TV18 report, quoting sources, had stated that the airline planned to raise around Rs 4,000 crore for its IPO. "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," sources told CNBC-TV18.

As of March 2020, the Wadia Group promoted company's debt stands at Rs 1,780 crore. Do note, as per the annual report for FY20, Bombay Burmah, Britannia, or Bombay Dyeing have no stake in the airline.

26/03/21 CNBC TV18

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