Budget carrier Go Airlines has received market regulator SEBI's nod for an initial public offering worth Rs 3,600 crore. The airline, which has rebranded itself as 'Go First', will raise Rs 3,600 crore via the sale of shares, says the Draft Red Herring Prospectus (DRHP) filed with the market regulator.
The company also plans to raise up to Rs 1,500 crore by way of a pre-IPO placement. The budget carrier had filed the DRHP for the IPO in May. The observations on the processing status of the draft offer documents were updated on the SEBI (Securities and Exchange Board of India) website on August 27 and made public on Monday.
Before this, SEBI had placed the processing of Go Airlines' draft papers for the IPO in "abeyance". The company aims to use Rs 2,015.81 crore of the IPO proceeds towards prepayment or scheduled repayment of all or a portion of certain outstanding borrowings.
ICICI Securities, Citi and Morgan Stanley have been appointed as Global Coordinators and Book Running Lead Managers to the issue. At present, three airlines are listed on bourses -- IndiGo, Jet Airways and SpiceJet. Jet Airways, which shuttered operations in April 2019, is undergoing an insolvency resolution process.
Founded in 2005, the airline provides ultra-low-cost flights for its customers. It belongs to the Wadia Group, which comprises leading brands such as Bombay Burmah, Bombay Dyeing, Britannia Ltd, and many more.
The Wadia group owns a majority stake (73.33 per cent) stake in the airline, while the remaining stake is held by entities including Baymanco Investments Ltd (21.05 per cent), Sea Wind Investment and Trading Company Ltd (3.76 per cent shareholding) and others.
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