New Delhi: Markets regulator Sebi has reportedly given the green signal to budget airline Go First’s planned maiden public issue of shares. Earlier, Sebi had temporarily suspended the initial public offering (IPO) of GoAir and had raised some queries with the Wadia Group-owned airline.
In May, the airline rebranded itself as Go First (then Go Air), positioning itself as an ultra-low-cost carrier focused on maintaining low-unit costs and filed papers to raise Rs 3,600 crore through a share sale.
Sebi’s approval came at a time when Jeh Wadia, the younger son of Wadia Group patriarch Nusli Wadia and one of the founder-promoters of Go First, stepped down from the boards of Britannia Industries and Bombay Burmah Group, thus leaving all listed businesses of the $15 billion Wadia Group. He had resigned as managing director of Go Airlines in March. A month later, he resigned MD of Bombay Dyeing and Manufacturing Co.
“Sebi has cleared the proposal with some observations,” a person familiar with the matter told ET.
After IndiGo and SpiceJet, Go First is the third Indian carrier to be listed on the bourses. The airline, which launched operations in 2005, has a market share of about 10.8 per cent in India at present.
The financial daily cited another person as saying the ultra-low-cost carrier can now move to the next step of filing the final red herring prospectus incorporating the markets regulator’s remarks. Also, it can start roadshows to garner investor interest. He went on to add that at present there is no clarity whether the airline would find the market favourable for an IPO.
In June, Sebi had kept the approval of Go Airlines IPO in abeyance.
The board and the shareholders had approved the re-appointment of Wadia as the managing director of the airline a period of five years from January 1, 2021, subject to certain terms and conditions, according to a disclosure in the draft red herring prospectus (DRHP).
27/08/21 ETNowNews.com
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