Now GoAir eyeing IPO too, may raise Rs 978 cr this fiscal itself

Go Airlines (India) Ltd (GoAir), the nation’s fifth-biggest carrier by passengers travelled, is considering an initial public offering (IPO) and has begun talks to appoint bankers, three sources directly involved in the process said. GoAir, part of the Wadia Group whose flagship companies include Bombay Dyeing and biscuit maker Britannia Industries, could look to raise as much as $150 million (about Rs 978 crore) in the IPO, said the sources, who declined to be named. [caption id=“attachment_2232588” align=“alignleft” width=“380”] Reuters[/caption] Bankers made presentations to the company earlier this week, the people said, adding that it was early to say whether the company would sell new shares or existing shareholders will reduce their stakes in the planned public offering. A spokesman for GoAir, which has a fleet of 19 Airbus A320 planes and had an 8.4 percent domestic market share last quarter, said the company would not comment on what he called market speculation. GoAir is estimated by consultant CAPA to have made a profit of $14 million-$15 million in the year to March, which would make it the second most profitable Indian airline after market leader IndiGo. IndiGo is selling shares in an IPO to raise as much as $464 million. According to a PTI report citing sources, the Wadia Group-promoted budget carrier is planning to go raise funds in the current fiscal itself, ahead of the scheduled delivery of 72 new Airbus A-320 planes starting April next year. The sources said the airline is likely to file the preliminary papers for the share sale soon. They said the share sale would help GoAir in its proposed international operations, which is at present on hold as it does not have 20 aircraft in the fleet, one of the two requisites for domestic carriers for flying abroad. The carrier was scheduled to take the delivery of its 20th plane last year as part of its 20 aircraft order at the time of commencement of operations in November, 2005. It, however, deferred the plan in view of the commencement of the delivery of new Airbus A320 neo (new engine option) from April, 2016. GoAir had in June, 2011 placed order for these 72 new A320s, valued at about Rs 32,400 crore, with the European aviation major Airbus. The existing rules require domestic carriers to be in operation for at least five years and have a fleet of a minimum of 20 aircraft to be eligible to fly on international routes. The rules are, however, under review as part of the much-awaited new civil aviation policy. In signs of revival in the primary market, many companies are coming out with IPOs. Cafe Coffee Day Enterprises’ Rs 1,150-crore share sale is the largest IPO in nearly three years. IndiGo’s Rs 3,268-crore IPO opened on October 27 and closes today. GoAir and IndiGo are the only two profitable domestic carriers. As of now, only two private domestic carriers – Jet Airways and SpiceJet – of the four are listed ones. Agencies