Wadia Group-promoted Go Airlines (now rebranded as Go First) is likely to launch its initial public offering in August after the Securities and Exchange Board of India clears it in July, news channel ETNow reported, citing sources familiar with the matter.
Go First did not immediately respond to YourStory's request for a comment on the veracity of the news report.
Last month, the company had filed its draft red herring outlining an IPO that could raise up to Rs 3,600 crore, the majority of which it intends to use to pay off the debt owed to Indian Oil Corp Ltd towards buying jet fuel.
Go Airlines has also planned to raise Rs 1,500 crore via the sale of preferential placement prior to the IPO, it said in its IPO filing.
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The airline had recently rebranded itself as Go First to "better reflect its customer acquisition strategy", and target young Indians and MSME travellers, the company said.
The company's plan to list on the stock market comes against the backdrop of a broad-based dip in the civil aviation sector brought on by the COVID-19 pandemic.
On the other hand, IPO markets recently have rewarded recent listees with opening day surges in share prices, and sustained gains thereafter. Prominent Indian startups such as , , , are also in line to become publicly traded entities.
YourStory recently reported that Paytm is planning a $3 billion IPO, the country's biggest ever, that could value it at around $25-$30 billion. The listing is likely to take place in November, and has received in-principle approval from the company's board already.
Go Airlines' competitors Interglobe Aviation and Jet Airways already trade on Indian exchanges. IndiGo reported a loss of Rs 1,147 crore in the fourth quarter, hit by the second wave of COVID-19, but the company's shares have continued to gain ground after investors said it had come out stronger than anticipated.
Investors are also betting on revenge travel once the lockdowns lift and COVID-19 cases decline over the next few months — a condition quite conducive to Go First's listing when it finally happens.
Edited by Kanishk Singh
Link : https://yourstory.com/2021/06/goair-could-launch-its-ipo-in-august-after-sebi-nod
Author :- Aparajita Saxena ( )
June 08, 2021 at 06:19PM
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