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Go Airlines’ ₹3,600-crore IPO likely in Dec.

Terra firma: The carrier’s total revenue more than doubled to ₹1,202.90 cr. in the first half of the fiscal.   | Photo Credit: special arrangement

Go Airlines (India) Ltd. is expected to open its ₹3,600-crore IPO in early December.

The proceeds will be used to settle outstanding dues and debt.

Go Airlines’ total revenue more than doubled to ₹1,202.90 crore in the first half of this fiscal year (FY22) compared with the year-earlier period.

It posted a 53.6% growth in total revenue to ₹752.86 crore in the second quarter of this fiscal, compared with a year earlier, as per a filing.

Passenger revenue rises

Total passenger revenue more than doubled to ₹866.71 crore in the first half this fiscal and grew 76% to ₹555.85 crore in the second quarter of FY22. The initiatives and strategic steps to bring down costs on a sustainable basis have reflected in the results where the company has reported positive EBITDAR for the six months, according to the filing.

As per the filing, the company’s ancillary revenue surged almost fourfold to ₹192.7 crore in the first half . It more than trebled to to ₹111.74 crore in the second quarter, compared with the year-earlier period.

‘Low cost model’

The company had rebranded itself from GoAir to Go First with a focus on the Ultra Low Cost Carrier (ULCC) business model.

As per papers filed with the SEBI, part of the proceeds of the initial public offer (IPO) will be used for prepayment or scheduled repayment of all or a portion of certain outstanding borrowings availed of by the company, amounting to ₹2,015.81 crore.

The funds would also be used for replacement of letters of credit, which are issued to certain aircraft lessors towards securing lease rental payments and future maintenance of aircraft, with cash deposit of ₹279.26 crore; repayment of dues to IOC in part or full, for fuel supplied to the company, worth ₹254.93 crore and general corporate purposes.


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Printable version | Jan 18, 2022 9:51:37 PM | https://www.thehindu.com/business/go-airlines-3600-crore-ipo-likely-in-dec/article37602255.ece

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