Budget carrier Go Airlines, which has rebranded itself as 'Go First', has filed preliminary papers for an initial share sale worth Rs 3,600 crore. The Wadia group-promoted carrier has been operating for 15 years and the proceeds from the initial public offer (IPO) will be primarily utilised for repayment of debt.
The airline is looking to raise up to Rs 3,600 crore through sale of shares, according to the draft red herring prospectus (DRHP).
The proceeds are planned to be utilised towards "prepayment or scheduled repayment of all or a portion of certain outstanding borrowings" as well as for 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 carrier would look to repay dues of Indian Oil Corporation Ltd, in part or full, for fuel supplied to it, and also use the proceeds for general corporate purposes, as per DRHP.
"Our company expects to receive the benefits of listing of the equity shares, including to enhance our visibility and our brand image among our existing and potential customers and to create a public market for our equity shares in India," it noted.
In the financial year ended March 2020, the airline had a loss of Rs 1,270.74 crore while total income stood at Rs 7,258.01 crore. It is now focusing on ultra low cost carrier (ULCC) model. At present, there are two operational scheduled carriers listed on domestic bourses – Indigo and SpiceJet.
After announcing rebranding on Thursday, Go First CEO Kaushik Khona said the airline has stayed resilient during the really tough times of the past 15 months.
"Even as the times continue to be extraordinary, Go First sees opportunities ahead. This rebranding reflects our confidence in the brighter tomorrow," he had said.