The Securities and Exchange Board of India (SEBI), the regulatory body for India's securities and commodity market, approved the draft on August 27 and made it public on Monday.
India's budget carrier Go Airlines, which recently rebranded itself to "Go First," has got approval for the much-awaited IPO of Rs 3,600 crore. According to the Draft Red Herring Prospectus, the airline plans to raise capital of up to Rs 3,600 crore through the sale of shares. It also plans to raise up to Rs 1,500 crorethrough a pre-IPO (Initial Public Offer) placement.
The airline filed for the IPO in May this year. The Securities and Exchange Board of India (SEBI), the regulatory body for India's securities and commodity market, approved the draft on August 27 and made it public on Monday.
The amount which will be raised by the IPO will be used for loan repayments. An amount of Rs 279.26 crore would be utilized for the replacement of letter of credits, which are issued to lease rental payments and future maintenance of aircraft. Further, the company would repay dues of Rs 254.93 crore to Indian Oil Corporation for fuel supplied to it, as per the DRHP.
GoAir started flying in late 2005. It has a fleet size of 57 aircraft and serves across 38 destinations, which has been reduced temporarily due to COVID restrictions. The airline is owned by the Indian business conglomerate Wadia Group which owns a 73.33 percent stake in the carrier, while other remaining shareholders include Baymanco Investments, Sea Wind Investment and Trading Company, Heera Holdings & Leasing, Nidhivan Investments & Trading Company,and Sahara Investments.
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