GoAir to hit the market with Rs 5,000 crore IPO

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Updated: September 14, 2019 7:14:07 AM

The airline has appointed Morgan Stanley, JM Financial, ICICI Securities and Citi as lead bankers for its public issue.

GoAir, IPO, largest airline, Morgan Stanley, JM Financial, ICICI Securities, CitiThe airline has expanded at a break-neck speed since then and is now looking at the equity dilution to fund its expansion plans through an IPO. (Reuters)

GoAir, the country’s fourth largest airline by market share, is looking to raise close to Rs 5,000 crore through its initial public offer (IPO). Sources close to the matter claim that the airline is looking to dilute around 25% or more for the same. The airline has appointed Morgan Stanley, JM Financial, ICICI Securities and Citi as lead bankers for its public issue.

ICICI Securities and JM Financial did not respond to queries till the time of going to press. FE has also learned from reliable sources that the draft red herring prospectus is expected to be filed before November end and that the airline is aiming for a listing in February/March 2020.

The airline has been keen on listing its shares for few years now as it has been profitable, but chose to hold back in 2016 due to concerns on valuation. The airline has expanded at a break-neck speed since then and is now looking at the equity dilution to fund its expansion plans through an IPO.

After reviewing economy and the sector, the airline decided to double its aircraft orders from 72 aircraft to 144 in 2016. The airline is expecting deliveries of at least one aircraft every month, but sources claim that Airbus is expected to deliver 15 planes instead of the expected 18 each year. In a matter of two years, the airline has doubled its fleet size to 50 aircraft.

The airline has gained market share, especially after Jet Airways was grounded in April this year to 11.1% in July, up from 9.2% in March 2019. GoAir currently operates 320 flights a day compared to 230 daily flights a year ago and flies to seven international destinations; it will add Kuwait and Singaore as new destinations this month.

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