GoAir, the low-cost airline has filed for the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to Rs 3,600 crore.
A DRHP or offer document is the preliminary registration document prepared by merchant bankers for prospective IPO-making companies in the case of book building issues.
The airline proposes an Initial Public Offer (IPO) of equity shares through the 100 percent book building process in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended. The Company will offer fresh equity shares aggregating up to Rs 3,600 crore, according to a press release.
ICICI Securities Limited, Citigroup Global Markets India Private Limited and Morgan Stanley India Company Private Limited have been appointed as the Global Coordinators and Book Running Lead Managers (GCBRLMs) to the IPO. Khaitan & Co is the Legal Counsel to the Company as to Indian Law while AZB & Partners is the Legal Counsel to the GCBRLMs as to Indian Law. Clifford Chance Pte Ltd. is the International Legal Counsel to the GCBRLMs.
The IPO is subject to receipt of requisite regulatory approvals, market conditions and other considerations. The Equity Shares of the Company are proposed to be listed on the BSE Limited and the National Stock Exchange of India Limited.
The airline plans to use the net proceeds from the fresh issuance of capital for prepayment or scheduled repayment of all or a portion of certain outstanding borrowings availed by GoAir, replacement of letter of credits, which are issued to certain aircraft lessors towards securing lease rental payments and future maintenance of aircrafts, with cash deposit, repayment of dues to Indian Oil Corporation Limited, in part or full, for fuel supplied to our Company, and (iv) general corporate purposes.
It has placed firm orders for delivery of 144 Airbus A320NEO aircraft as part of the growth plan. Of these, the airline has already taken delivery of 46 Airbus A320NEO aircraft and is awaiting delivery of 98 Airbus A320NEO aircraft.
GoAir rebrands as Go First
On May 13, the Wadia Group-owned GoAir rebranded itself as ''Go First'' as the airline focuses on ultra-low-cost business model amid the aviation industry grappling with pandemic headwinds.
The Go First as ULCC (ultra-low-cost carrier) would operate single aircraft type across its fleet, which currently has both Airbus A320 and A320Neos (new engine option) planes in operation, it said.
With a 7.8 market share percent in March, the city-based airline breached the 10 percent market share threshold for the first time in June 2014 and barring a few occasions it kept hovering in the sub-10 per cent range till the emergence of the pandemic last year.
The airline said that at the heart of the latest revamp is the full embrace of ULCC model and was in the process of transitioning all its operations under this new brand.
The development comes against the backdrop of the airlines' industry battling with lower passenger numbers and travel restrictions due to the second COVID-19 wave.
(With PTI inputs)
