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GoFirst, formerly known as GoAir is considering to launch its initial public offering in early June. According to sources, the Wadia-Group owned low-cost-carrier will raise ₹3,600 crore as per the initial plan.
BusinessLine had reported that amid the Omicron wave and then the Russia-Ukraine war, GoFirst had put off its IPO plan in December indefinitely. Over the last few months Wadia Group has been pumping money into the company to keep it afloat.
GoFirst had raised ₹300 crore from Baymanco Investment by offloading 2,30,75,000 equity shares for over 8.19 per cent of more stake in the company. The Wadia Group-promoted airline raised funds at a face value of ₹10 each at a premium of ₹120. Baymanco is a 100 per cent subsidiary of Bombay Burmah, which is also a part of the Wadia group.
“The markets are opening up, and the investor confidence too is picking up with LIC and Delhivery among other IPOs scheduled for May. Hence, the company has decided to open the issue in June. Although, clarity on the date will only come when investment bankers give a green light,” said a top source.
Firm on price
However, unlike Delhivery, GoFirst might not slash its issue size. “We will not slash our issue size. Sentiments are picking up, so we may not slash our price. It will be ₹3,600 crore.”
According to the Draft Red Herring Prospectus (DRHP) filed by the company with the Securities and Exchange Board of India (SEBI), it plans to raise ₹3,600 crore through the IPO primarily to pay off its debt.
The source who requested anonymity, said that GoFirst has had a positive response from its potential investors. “Over 27 investors have shown a positive interest. The company will make a fresh presentation soon,” said the source.
When conacted GoFirst did not offer a comment.
According to recent reports, IPO of Delhivery is likely to open for subscription on May 11, but it has cut its total issue size to ₹5,235 crore from ₹7,460 crore planned earlier. It will now raise ₹4,000 crore via the fresh issue and ₹1,235 crore through an offer for sale (OFS). LIC issue is set to open on May 04.
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