GoAir, rebranded as Go First, is planning to raise Rs 3,600 crore from its initial public offer (IPO) and launch its share by December 8. The company will use the proceeds to reduce its debt exposure, pay oil companies and lessors, Business Standard reported on November 19, citing a company source.
The company's IPO anchor issue is scheduled to launch on December 7. GoAir had filed an addendum to the draft red herring prospectus earlier this month with the objective to make part payment of outstanding lease rental, maintenance, repair and overhaul of aircraft.
The company is looking to pay Rs 443.97 crore on the outstanding payment to the aircraft lessors CDB Aviation Lease Finance DAC, Jackson Square Aviation Ireland Limited and ACG Acquisition Ireland III Ltd, according to Moneycontrol.
Meanwhile, the company also looks to pay Rs 96.3 crore out of the outstanding maintenance amount from the proceeds to MTU Maintenance Zhuhai Co Ltd.
The company had posted a net loss of Rs 923 crore in April-September of the current financial year.
The Wadia group-controlled airline is working on cost-saving measures and evaluating the higher-capacity Airbus A321neo aircraft in order to deal with losses due to amortisation of aircraft leases and higher fuel costs.
However, with easing of lockdown restrictions, massive reduction in fresh COVID-19 cases and growing vaccination coverage, the airline saw its revenue in the first half double to Rs 1,202 crore on a year-on-year basis due to increased capacity. Go First achieved an EBITDAR (earnings before interest, depreciation, tax, amortisation, and rentals) margin of 13.9 percent in the July-September, aided by 53 percent revenue growth in the period, a source said.
The domestic aviation industry is expected to post 45-50 percent growth in FY22 in domestic air passenger traffic, and the international air passenger traffic is expected to grow at 80-85 percent during the same period, according to ICRA.
(Edited by : Shoma Bhattacharjee)
First Published: IST