Go Airlines India Ltd IPO

GoAir, founded in 2004 and owned by the Wadia group, started its operations in 2005 and has since then carried 80 million passengers. The company has flights flying to 28 domestic destinations as well as 9 international ones as of January 31, 2020. Around 300 flights are operated daily. As per a survey in 2017, it is the 5th largest airlines company in the country. The target market for this airlines is young professionals, leisure travelers and MSME business travelers. The main aim of the company is profit maximization through maintaining a low cost base and optimum utilization of its fuel efficient, modern fleet. The Managing director and promoter of GoAir, Jeh Wadia, resigned last week and the former CEO of Spirit Airlines, Ben Baldanza has been appointed as GoAir’s Vice Chairman. They have been thinking about going public for a few years but various tiffs in the upper management has kept delaying the process. The Wadia group has 73.3% stake in the company and Baymanco Investment Ltd owns 21.50% stake. 

The objectives of the issue are stated as:

1. Prepayment and repayment of all the debt accumulated by the company
2. Repayment of the dues to Indian Oil Corporation for the fuel that has been supplied to GoAir
3. Paying for the upkeep and maintenance of the aircrafts (Rs.254.93 crore)
As on November 2, 2021, Rs.1,346.7 million is the amount of money owed by the company to vendors The company plans on utilizing Rs.96.3 crore from the proceeds of the issue, to pay back the vendors