Go Airlines files draft papers for Rs 3.6K cr IPO

New Delhi: Go Airlines, which has rebranded itself as 'Go First', has filed preliminary papers for an initial share sale worth Rs 3,600 crore and the proceeds will be mainly used to repay dues amid the aviation industry facing strong headwinds due to the coronavirus pandemic.

After taking to the skies 15 years ago, the Wadia group-promoted budget carrier -- which has ambitious expansion plans -- is looking to mop up the amount through issuance of fresh equity shares. It also has plans to raise up to Rs 1,500 crore by way of a pre-IPO placement.

Once the shares get listed, Go Airlines (India) Ltd will be the third operational scheduled carrier after SpiceJet and IndiGo to trade on Indian bourses. In a release on Friday, Go Airlines said it has filed a draft red herring prospectus (DRHP) for an initial public offer (IPO) to raise up to Rs 3,600 crore through issuance of fresh equity shares.

"We expect competitive conditions in our industry to intensify further as new entrants emerge and as existing competitors seek to extend their operations and flight frequencies over routes that we operate," as per the DRHP.