GoAir, now known as GoFirst, is an ultra-low-cost carrier (ULCC) airline company that is primarily focused on affordable, and fuel-efficient air travel to the people. Incorporated in the year 2004, the company mainly targets Indian youngsters, small business commuters, and travelers looking out for a low-cost air travel option. With a total of 56 aircraft, the company has increased its market share from 8.8 percent in FY 2017-2018 to 10.8 percent in FY 2019-2020.
As of January 2020, the airline has a network of 28 domestics and 9 international destinations and has thereby increased the total passenger volume from 10.8 million in FY 2016 to 16.2 million in FY 2020. The company holds a good position in crucial ports of Mumbai, Delhi, Kolkata, Ahmedabad, etc.
GoAir has now received a green signal from SEBI to go ahead with the IPO. The airline had filed papers for the same in May 2021 but was put on hold by SEBI. The reason for this hold was not stated in the notification issued by the regulatory authority but reports claim that it was due to a pending inquiry against Bombay Dyeing and Manufacture Company Limited having the Wadias as its promoters. But now since SEBI has called off this hold, we can see the airline enter the market anytime shortly.
GoAir IPO Details
The GoAir Initial Public Offering is expected to be launched in January 2022 (tentative). With this, the airline aims to raise a capital of Rs.3600 Cr from the proceeds of the issue. It is going to list itself in the two major stock exchanges BSE and NSE. The face value of each share is Rs. 10 but since the dates of the issue aren’t yet finalized, there is some ambiguity on the issue price and the lost size of the IPO. In addition to this, GoAir has also mentioned in the DHRP, about a pre-IPO placement worth Rs. 1500 Cr.
GoAir IPO Timetable
Here are the details about of IPO release date, Price, market size and other details
|IPO Open Date||January 2022|
|IPO Close Date||January 2022|
|IPO Size||Approx ₹3600 Cr|
|Fresh Issue||Approx ₹3600 Cr|
|Face Value||₹10 Per Equity Share|
|Price Band||₹- to ₹- Per Equity Share|
|Listing Platform||BSE & NSE|
As per the DRHP, the airline has the following objectives to be fulfilled from the proceeds of the issue-
- Rs. 2015.81 Cr for the prepayment or scheduled repayment of the whole or a portion of certain outstanding loans or borrowings that were availed by the company;
- Rs. 279.26 Cr for the replacement of the letter of credits, that were issued to the aircraft lessors towards securing lease rental payments and also for future maintenance of the aircraft with cash deposits;
- Rs. 254.93 Cr for the payment to Indian Oil Corporation Limited (IOCL) for the fuel supplied for the aircraft; and
- the remaining balance out of the net proceeds for some general corporate purposes.
The company reported a net loss of Rs. 32.39 Cr in FY 2018 and a net loss of Rs. 387 Cr in the FY 2019. Greatly hit by the Covid-19, the airline reported a loss of Rs. 1,271 Cr in FY 2020. As per reports, it has also reported a debt of Rs. 1,780 Cr in FY 2020.
The company has 3 individual promoters namely, Nusli Neville Wadia, Jehangir Nusli Wadia, Ness Nusli Wadia, and 1 body corporate promoter named Go Investments and Trading Pvt Ltd which is headed by Nusli Neville Wadia, Jehangir Nusli Wadia, Ness Nusli Wadia, Jairaj Champaklal Bham, and Sukant Kelkar Sadashiv.
As of March 2021, the Wadia Group owns a major portion of the capital of about 73.33 percent while the remaining shareholding rests with other corporate entities including, Baymanco Investments Ltd which owns 21.05 percent of the stake, Sea Wind Investment and Trading Company Limited has a stake of about 3.76 percent. The remaining 1.86 percent is divided among Heera Holdings and Leasing Pvt Ltd, Nidhivan Investments & Trading Company Pvt Ltd, and Sahara Investments Pvt Ltd as 0.62 percent each.
Distribution among various classes of investors
Out of the pool of Rs. 3600 Cr, the GoFirst IPO has been segregated in the following manner:
- 75 percent of the total issue price is dedicated to the Qualified Institutional Investors (QIB)
- A portion of the issue aggregating to 15 percent is dedicated to the Non-Institutional Investors (NII)
- The remaining 10 percent is dedicated to the Retail Investors or Individual Investors.
Registrar and Book Lead Managers
GoFirst Airlines have appointed Link Intime India Private Limited as the registrar of this IPO.
Apart from this, the Book Lead Managers are as follows-
- Citigroup Global Markets India Private Limited
- ICICI Securities Limited
- Morgan Stanley India Company Private Limited
At last, we would say that an investor must be content in regards to the GoAir IPO and then invest wisely. GoAir Airlines has been a good name in the industry ever since they started. With a total of 3 airline stocks, Interglobe Aviation (IndiGo), Spicejet, and Jet Airways in the markets at present, the GoAir Initial Public Offering is also expected to be as prosperous as its peers, which have gone through the ups and downs of the market even during the pandemic.
Frequently Asked Questions
When is listing date of GoAir IPO?
The Listing date of IPO will open on January 2022 for QIB, NII, and Retail Investors.
How to Apply the GoAir IPO?
You can apply for GoAir IPO via Upstox or Zerodha account, Navigate to IPO section in these platform on IPO listing date, you can easily apply over there.
How to Apply the GoAir IPO?
The GoAir/GoFirst IPO size is Rs.3600 Crores of fresh issues
What is GoAir IPO Price Band?
The price band is not announced yet, we will notify you here once we get the details
What is financial review of GoAir?
If you see the financial metrics, GoAir has booked losses past 3 years due to covid19, but assuming the year 2022 will be profit booking year.