New Delhi: Go Airlines, which has rebranded itself as ‘Go First’, has filed preliminary papers for an preliminary share sale price Rs 3,600 crore and the proceeds will likely be primarily used to repay dues amid the aviation trade going through sturdy headwinds because of the coronavirus pandemic.
After taking to the skies 15 years in the past, the Wadia group-promoted price range service — which has formidable enlargement plans — is seeking to mop up the quantity via issuance of recent fairness shares. It additionally has plans to lift as much as Rs 1,500 crore by means of a pre-IPO placement.
Once the shares get listed, Go Airlines (India) Ltd would be the third operational scheduled service after SpiceJet and IndiGo to commerce on Indian bourses.
In a launch on Friday, Go Airlines stated it has filed a draft pink herring prospectus (DRHP) for an preliminary public provide (IPO) to lift as much as Rs 3,600 crore via issuance of recent fairness shares.
“We expect competitive conditions in our industry to intensify further as new entrants emerge and as existing competitors seek to extend their operations and flight frequencies over routes that we operate,” as per the DRHP.
It additionally famous that the aviation trade faces important enterprise challenges because of the COVID pandemic.
In the monetary 12 months ended March 2020, the airline had a lack of Rs 1,270.74 crore whereas complete revenue stood at Rs 7,258.01 crore.
“Our company expects to receive the benefits of listing of the equity shares, including to enhance our visibility and our brand image among our existing and potential customers and to create a public market for our equity shares in India,” the DRHP stated.
From the online proceeds of the IPO, the airline plans to pay over Rs 2,015.81 crore in the direction of prepayment or scheduled compensation of all or a portion of sure excellent borrowings”.
An quantity of Rs 279.26 crore could be for “replacement of letter of credits, which are issued to certain aircraft lessors towards securing lease rental payments and future maintenance of aircraft, with cash deposit”, as per DRHP.
Also, the airline will make compensation of dues of Rs 254.93 crore to Indian Oil Corporation for gas equipped to it.
“A further issue of equity shares, through a preferential offer or any other method as may be permitted in accordance with applicable law, aggregating up to Rs 15,000 million, which may be undertaken by our company… Prior to the filing of the Red Herring Prospectus with the RoC (registrar of companies),” it famous.
The Wadia group owns 73.33 per cent stake within the service whereas the remaining shareholding is with different entities, together with Baymanco Investments. The latter holds 21.05 per cent stake.
Others are Sea Wind Investment and Trading Company (3.76 per cent shareholding), Heera Holdings & Leasing, Nidhivan Investments & Trading Company and Sahara Investments — all of the 4 entities have 0.62 per cent stake every within the airline.
As per the DRHP, there are a complete of 99 litigations in opposition to the corporate, together with 43 associated to actions by statutory or regulatory authorities.
Global coordinators and guide working lead managers to the difficulty are ICICI Securities, Citi and Morgan Stanley.
The airline is now specializing in extremely low value service (ULCC) mannequin.
After asserting rebranding on Thursday, Go First CEO Kaushik Khona stated the airline has stayed resilient in the course of the actually powerful occasions of the previous 15 months.
“Even as the times continue to be extraordinary, Go First sees opportunities ahead. This rebranding reflects our confidence in the brighter tomorrow,” he had stated.
The airline has positioned agency orders for supply of 144 Airbus A320 neo planes; and out of them, it has taken supply of 46 plane.
As on January 31, 2020, GoAir operated flights to twenty-eight home and 9 worldwide locations.
At current, three scheduled carriers are buying and selling on the home bourses — IndiGo, SpiceJet and Jet Airways. Jet Airways shuttered operations in April 2019.Â
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