Sebi keeps in 'abeyance' processing of Go Airlines' draft papers of `3,600 crore IPO
New Delhi: Markets regulator Sebi has kept in abeyance the processing of Go Airlines' draft papers for an initial public offer worth Rs 3,600 crore.
Go Airlines (India) Ltd, which has announced rebranding itself as 'Go First', filed preliminary papers for an initial share sale worth Rs 3,600 crore in May. The proceeds will be mainly used to repay dues.
The "issuance of observations kept in abeyance", according to Sebi's latest update on processing status of Go Airlines' draft offer documents. The information was updated on June 25. In Sebi parlance, issuance of observations implies its go-ahead for the IPO. Under existing norms, the regulator is "obligated to keep issuance of observations in abeyance for a period of 30 days or 45 days or 90 days or more, as the case may be".
On June 11, the regulator had sought clarifications from the offer's Lead Manager. The Coordinating Lead Manager (Pre-Issue) is ICICI Securities Ltd. Specific details about the reasons for Sebi keeping the issuance of observations in abeyance could not be immediately ascertained. There was no immediate comments from a Go Airlines spokesperson.
The airline, which has been flying for more than 15 years ago, plans to raise Rs 3,600 crore through issuance of fresh equity shares. It also plans to raise up to Rs 1,500 crore by way of an pre-IPO placement.
From the net IPO proceeds, the airline plans to pay over Rs 2,015.81 crore towards prepayment or scheduled repayment of all or a portion of certain outstanding borrowings.
An amount of Rs 279.26 crore would be for "replacement of letter of credits, which are issued to certain aircraft lessors towards securing lease rental payments and future maintenance of aircraft, with cash deposit", as per the Draft Red Herring Prospectus (DRHP) filed with Sebi in May.
