InvestorQ : Can you tell me about the forthcoming IPO of Go Air?
Anamika Sodhani made post

Can you tell me about the forthcoming IPO of Go Air?

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Angel dcosta answered.
2 months ago
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Go Airlines of the Wadia group has filed DRHP for Rs.3,600 crore IPO. The entire IPO will be by way of new issue only. The company plans to raise Rs.1,500 crore via preferential issue ahead of the IPO. Go Air will essentially use the proceeds of the IPO to repay debt. While Rs.2,016 crore will be used for scheduled repayment of borrowings, Rs.279 crore will be for replacement of letters of credit.

Go Air will be a test of retail appetite as it plans to raise funds at a time when a fragile recovery of civil aviation sector is underway. In the last one year, Indigo and Spice Jet rallied by 74% and 60% while Jet Airways price has jumped 3-fold. Go Air will look to ride this positive trend. In FY20, Go Air sank into net loss of Rs.1,2790 crore. In 2019, Go Air had reported a small profit of Rs.123 crore.

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