Saturday, November 20, 2021

GoAir IPO opens on Dec 8, airline to retire debts with proceeds: Report

GoAir, rebranded as Go First, is planning to raise Rs 3,600 crore from its initial public offer (IPO) and launch its share by December 8. The company will use the proceeds to reduce its debt exposure, pay oil companies and lessors, Business Standard reported on November 19, citing a company source.

The company's IPO anchor issue is scheduled to launch on December 7. GoAir had filed an addendum to the draft red herring prospectus earlier this month with the objective to make part payment of outstanding lease rental, maintenance, repair and overhaul of aircraft.

The company is looking to pay Rs 443.97 crore on the outstanding payment to the aircraft lessors CDB Aviation Lease Finance DAC, Jackson Square Aviation Ireland Limited and ACG Acquisition Ireland III Ltd, according to Moneycontrol.

Meanwhile, the company also looks to pay Rs 96.3 crore out of the outstanding maintenance amount from the proceeds to MTU Maintenance Zhuhai Co Ltd.

The company had posted a net loss of Rs 923 crore in April-September of the current financial year.  

The Wadia group-controlled airline is working on cost-saving measures and evaluating the higher-capacity Airbus A321neo aircraft in order to deal with losses due to amortisation of aircraft leases and higher fuel costs.


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