Budget carrier GoAir has filed a ‘Draft Red Herring Prospectus’ (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to Rs 3,600 crore.
Accordingly, GoAir proposed an Initial Public Offer (IPO) of equity shares through the 100 per cent book building process in accordance with SEBI regulations.
“The company will offer fresh equity shares aggregating up to Rs 3,600 crore ICICI Securities Limited, Citigroup Global Markets India Private Limited and Morgan Stanley India Company Private Limited have been appointed as the Global Coordinators and Book Running Lead Managers (GCBRLMs) to the IPO,” the airline said in a statement issued on Friday.
“Khaitan & Co is the Legal Counsel to the Company as to Indian Law while AZB & Partners is the Legal Counsel to the GCBRLMs as to Indian Law. Clifford Chance Pte Ltd. is the International Legal Counsel to the GCBRLMs.”
As per the statement, the IPO is subject to receipt of requisite regulatory approvals, market conditions and other considerations.
“The Equity Shares of the Company are proposed to be listed on the BSE Limited and the National Stock Exchange of India Limited.”
According to the statement, GoAir plans to use the net proceeds from the fresh issuance of capital for prepayment or scheduled repayment of all or a portion of certain outstanding borrowings and replacement of letter of credits, which are issued to certain aircraft lessors towards securing lease rental payments and future maintenance of aircrafts, with cash deposit.
Besides, the proceeds will be utilised for repayment of dues to Indian Oil Corporation, in part or full, for fuel supplied to the company and for general corporate purposes.
Presently, GoAir has placed firm orders for delivery of 144 Airbus A320NEO aircraft as part of the growth plan.
Of these, the airline has already taken delivery of 46 Airbus A320NEO aircraft and is awaiting delivery of 98 Airbus A320NEO aircraft.
GoAir as an ultra-low-cost carrier (ULCC) is focused towards maintaining low unit costs and operational efficiency.
At present, it is one of the fastest growing airlines in India, with an increase in domestic market share from 8.8 per cent in fiscal 2018 to 10.8 per cent in the fiscal 2020.
As on January 31, 2020, GoAir covered a network of 28 domestic and 9 international destinations.