Budget carrier GoAir on Friday filed for Rs 3600 crore of Initial Public Offering (IPO). GoAir filed a Draft Red Herring Prospectus (DRHP) with the capital market regulator Securities and Exchange Board of India (SEBI) for its IPO. The company, which is in the process of rebranding itself as ‘Go First’, said, it will offer fresh equity shares aggregating up to Rs 3,600 crore that will be used to repay loans and clear dues.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

India is currently witnessing a severe surge in coronavirus cases with over 3 lakh cases and around 4000 deaths have been reported almost every day since March. 

Through this fundraising, the airline will repay the money it had defaulted on several of its aircraft lease agreements, and it’s not been able to negotiate any deferral agreements, the company said. 

The Wadia group promoted airline in a statement said, "The COVID-19 pandemic has had an adverse impact on our business ... the duration and spread of the pandemic or another pandemic could result in additional adverse impact on our business."  

The group also runs textiles company Bombay Dyeing and Manufacturing Co Ltd and biscuit maker Britannia Industries. 

The lead book-running managers for the GO Air IPO are ICICI Securities, Citigroup Global Markets India, and Morgan Stanley India. The company's offering may also include further share issues worth up to Rs 1500 crore, according to the filing. 

Earlier this month, a food aggregator Zomato has also filed DRHP paper with SEBI for Rs 8250 crore IPO, the listing of the Zomato share as expected in the mid-year of 2021.