Wadia Group-promoted airline GoAir has revived its plans of public listing in India through an Initial Public Offering (IPO). According to a report by LiveMint, the budget airline is discussing its plans with investment banks but is yet to finalise names. GoAir IPO is likely to raise around INR2,000 crore (INR20 billion), according to market sources.
“GoAir has recently invited investment banks and lawyers to pitch for the mandate for managing the initial public offering (IPO) of the company,” the report cited an unnamed person as saying.
Investment banks Citi and Morgan Stanley are reported to be in the fray for the IPO which will be the second public offer in the aviation sector in recent years. Market leader IndiGo came up with its successful IPO in October 2015 and the company’s stock has more than doubled since listing.
This will be second attempt by the budget carrier to tap primary market. In its last attempt, the company mandated Kotak Mahindra Capital and Axis Capital to launch its IPO.
GoAir IPO: Jet’s exit to create opportunities
The renewed bid for GoAir IPO comes at a time when existing players are busy capitalizing on the void created by Jet Airways’ exit. This has resulted in availability of more routes for existing airlines which also stand to gain through a chance to recruit experienced pilots.
Currently, GoAir operates 270 daily flights connecting 24 domestic and four international destinations.
Even though GoAir is smaller than IndiGo, SpiceJet, and Air India in terms of market share, it is the best airline when it comes to on-time performance, revealed the latest data released by the Directorate General of Civil Aviation.
Nevertheless, the airline has struggled to expand its fleet in recent years due to several internal and external factors. In the latest setback, GoAir has seen management churn at the top level. Over the last 12 months, the company’s chief executive, chief operating officer and chief commercial officer have resigned from their positions.