| Log in

Go Air too mulls IPO by March

By PTI
19 October, 2015

Wadia Group-promoted budget carrier GoAir is planning to go for an initial public offer in the current fiscal, ahead of the scheduled delivery of 72 new Airbus A-320 planes starting April next year.

GoAir would be the second domestic carrier to come out with an IPO after rival IndiGo, which is all set for little over Rs 3,200-crore initial share sale on October 27 amid the season of companies queueing up to tap the capital market.

As of now, only two private domestic carriers — Jet Airways and SpiceJet — of the four are listed ones.

Sources said GoAir is firming up plans for the IPO in this financial year that ends on March 31, 2016. The airline is likely to file the preliminary papers for the share sale soon, they added.

However, the likely size of the planned IPO could not be ascertained.

When contacted, a GoAir official said, “We don’t comment on market speculations”.

GoAir and IndiGo are the only two profitable domestic carriers.

Sources said the share sale would also help GoAir in its proposed international operations, which is at present on hold as it does not have 20 aircraft in the fleet, one of the two requisites for domestic carriers for flying abroad.

The carrier currently has only 19 Airbus A320s in the fleet. It was scheduled to take the delivery of the 20th plane last year as part of its 20 aircraft order at the time of commencement of operations in November, 2005.

The airline, however, deferred the plan in view of the commencement of the delivery of new Airbus A320 neo (new engine option) from April, 2016.

GoAir had in June, 2011 placed order for these 72 new A320s, valued at about Rs 32,400 crore, with the European aviation major Airbus.

The existing rules require domestic carriers to be in operation for at least five years and have a fleet of a minimum of 20 aircraft to be eligible to fly on international routes.

The rules are, however, under review as part of the much-awaited new civil aviation policy.

In signs of revival in the primary market, many companies are coming out with IPOs. Cafe Coffee Day Enterprises’ Rs 1,150-crore share sale is the largest IPO in nearly three years.

IndiGo’s Rs 3,268-crore IPO opens on October 27 and closes on October 29.

Though the carrier’s share sale is much awaited, the expectations are slightly tempered after the relatively lukewarm response to Cafe Coffee Day issue.

Under IndiGo’s offer, its parent InterGlobe Aviation would have fresh issue worth Rs 1,272.2 crore as well as an offer for sale of over 2.61 crore shares.


Leave Your Comment
IndiGo eyes up to $505M in IPO

IndiGo eyes up to $505M in IPO

PTI 2 years ago
Low-cost airline IndiGo’s parent InterGlobe Aviation has fixed the price...
SpiceJet, GoAir In Merger Talks: Report

SpiceJet, GoAir In Merger Talks: Report

TEAM VCC 9 years ago
This seems to be a move that has some logic. Indian low cost carriers&nbsp...
GoAir ropes in former Jet Airways' CEO Wolfgang Prock-Schauer as chief executive

GoAir ropes in former Jet Airways’ CEO Wolfgang Prock-Schauer as chief executive

Bhawna Gupta 3 years ago
Wadias controlled private budget carrier Go Airlines (India) Ltd, which operates...
No Comments

Go Air too mulls IPO by March

Powered by WordPress.com VIP