Over the past two years, new IPOs or initial public offerings have become one of the most trending topics in the Indian Stock Market. With the listing of LIC IPO, now, the market is looking forward to getting more details regarding the subsequent big upcoming IPOs. The Go Airlines India IPO is one of the big upcoming IPO that is creating a buzz in the markets. In this article, we shall discuss all the key features and facts of the Go Airlines India IPO. We touch upon the critical details of the company. And lastly, we will tell you how to apply for the IPO using the best trading app in India. Now, let us learn about Go Airlines India by discussing its background of the Airlines.
About Go Airlines India Limited
Founded in 2004 by the Wadia group, one of India’s oldest conglomerates, Go Airlines India commenced its operations in 2005. It started operations under the GoAir brand but has rebranded as Go First. The company labels itself as an ultra-low-cost carrier or ULCC. Hence, Go First focuses on maintaining low unit costs. At the same time, it also aims to deliver good value to its customers. Therefore, the company’s target audience is primarily young Indian leisure travelers and MSME (micro, small & medium enterprises) business professionals.
Go Airlines is a relatively young airline company compared to most of the other top airlines in the country. However, it is successfully able to gain more market share. It increased its domestic market share from 8.8% in fiscal 2018 to 10.8% in fiscal 2020. It makes Go Airlines one of the fastest-growing airlines in the country. The company also managed to scale up its passenger volume at a compounded annual growth rate (CAGR)of 22.4% from 2018 to 2020, increasing passenger count from 10.8% in 2018 to 16.2 million in 2020. Go Airlines has a fleet of 57 aircraft as of September 2021, 50 of which are A320 NEO aircraft and 7 are A320 CEO aircraft. As of January 2020, Go Airlines operates in 29 domestic and ten international cities. The company will keep flights affordable by utilizing modern, fuel-efficient fleets.
Go Airlines India IPO Details
According to the company’s DRHP (Draft Red Herring Prospectus), the company plans to raise around 3600 crores through the IPO. The entire issue will consist of a fresh issue of equity shares, and, for now, there is no OFS (offer for sale). The face value of the Go First shares is set at Rs 10. Per equity share. Once the IPO launches, the shares will list on both the NSE and the BSE. However, the price band and the lot size of the IPO are not yet announced. So, the opening and closing dates to subscribe to the IPO are also not announced.
A majority of the capital raised through the IPO will go into the company’s prepayment and repayment of debt. It will include payment of dues to Indian Oil Corporation for fuel supply. The remainder of the capital raised through the IPO will go towards aircraft maintenance and other general corporate purposes.
Applying for the Go Airlines IPO
Since the price, brand, lot size, and subscription dates are still not yet revealed; you cannot apply for the IPO as of now. However, in the meantime, you can still evaluate the company. Go Airlines’ revenue is growing at a strong compounded annual growth rate (CAGR) positive. At the same time, the company is also expanding in market share and strengthening its market presence. However, the company is not doing well for the past few years to maintain a positive net profit. However, you need to consider the adverse impact of COVID-19 on the company’s operations. However, with the pandemic subsiding, India’s tourism industry can recover and flourish again. The company is also yet to receive its order of 99 additional aircraft in the next few years.
To receive more updates on Go Airlines India, you can open a Demat account with Kotak Securities for zero account opening fees. To invest in all share market securities, including IPOs, you must have a Demat account. You can open a Demat account with Kotak Securities by visiting the official website or by downloading the Kotak Stock Trader App on your smartphone. The Kotak Stock trader app is the best trading app in India if you want to receive IPO updates and other market updates on your smartphone. You can instantly apply to an IPO using the app once the IPO is open for subscription.