Go Airlines (India) Limited (GoAir/ Company), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to Rs. 3,600 crore.
GoAir proposes an Initial Public Offer (IPO) of equity shares through the 100% book building process in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended. 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. 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.
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.
GoAir plans to use the net proceeds from the fresh issuance of capital for the purpose of (i) prepayment or scheduled repayment of all or a portion of certain outstanding borrowings availed by GoAir, (ii) 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, (iii) repayment of dues to Indian Oil Corporation Limited, in part or full, for fuel supplied to our Company, and (iv) general corporate purposes. For further details, please refer to the DRHP section titled "Objects of the Issue". 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 & operational efficiency and reliability to deliver a superior customer experience in comparison to other ULCCs and Low-Cost Carriers (LCCs). It is one of the fastest growing airlines in India, with an increase in domestic market share from 8.8% in fiscal 2018 to 10.8% in the fiscal 2020*. GoAir had a high aircraft utilization during the fiscal 2020, with an average utilization of 12.9 hours per day and a load factor of 88.9%*. The Airline achieved the best on-time performance among the airlines in India for 15 consecutive months between the period September 2018 to November 2019. GoAir also had the least number of cancellations at 0.3% during the fiscal 2021 (as of January 31, 2021). It also had the lowest number of customer complaints at 0.3 per 10,000 customers (as against the industry average of 1.0 per 10,000 customers) during the fiscal 2021 (for the period up to January 31, 2021)*.
As on January 31, 2020, GoAir covered a network of 28 domestic and 9 international destinations*. The airline's network is spread across major cities in India and abroad, including Ahmedabad, Aizawl, Bagdogra, Bengaluru, Bhubaneswar, Chandigarh, Chennai, Coimbatore, Delhi, Goa, Guwahati, Hyderabad, Indore, Jaipur, Jammu, Kannur, Kochi, Kolkata, Leh, Lucknow, Mumbai, Nagpur, Patna, Port Blair, Pune, Ranchi, Srinagar, Varanasi, Abu Dhabi, Bangkok, Colombo, Dubai, Dammam, Kuwait, Male, Muscat and Phuket.
* Source: CAPA Report