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Go First plans IPO of up to INR 3,600 cr by July

Wadia group owned Go First plans to hit the public markets by the end of June or early July.

The airline which had got approval from market regulator Sebi for its IPO last year had held back its IPO first due to the emergence of Omicron and then to avoid a clash with the mega IPO of Life Insurance Corporation (LIC).

Sources said that the management of Go First is preparing to restart the roadshows and investor presentation. “Given the feedback from bankers, we are ready for an IPO,” a person aware of the airline’s plans said, adding that the company will not reduce the issue size.

The airline plans to garner up to INR 3,600 crore through sale of shares, according to the Draft Red Herring Prospectus (DRHP) plans to utilise a primary portion towards prepayment or scheduled repayment of all or a portion of certain outstanding borrowings, vendors, and aircraft lessors.

Industry sources said that a buoyancy in domestic traffic has encouraged the merchant bankers of the company to relook at the IPO. This is despite heightened challenges of record high fuel prices and a weaker rupee against the dollar which can hit valuations of an airline IPO.

“The buoyancy of traffic has definitely picked up. May has been better than April in terms of booking and advance booking has also become stronger. The top line and occupancy looks encouraging. We still expect around 10-15 percent increase in demand,” a senior executive of the airline said. (Source BS)

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