Go Airlines Halts Its IPO Due to Ongoing Third Wave

IPO Plans Postponed

Go Airlines intended to raise Rs. 3,600 crores through its IPO. In addition, it decided to raise Rs. 1,500 crores via a pre-IPO placement. However, the recent COVID-19 wave caused by the Omicron variant has compelled the company to postpone all IPO-related plans.

The airline wants to pump in additional funds since it would require extra capital for its operational expenses. Many experts feel that Go Airlines will launch its IPO in the near future as the Omicron variant is milder compared to other variants, and the ongoing wave won’t last for long. They expect that this wave will not have any major impact on the aviation industry, which looks bullish in the medium term.

The low mortality rate of this variant has made many hopeful that this wave will peak within the coming weeks and its curve will flatten soon enough. Government restrictions in view of the recent wave have impacted most airlines as people now travel only for essential purposes.

The Dispute in Wadia Family

Go Airlines IPO was originally slated to open on 8 December 2021. However, the company had to hold it off to resolve some internal issues. In addition, the travel restrictions in the wake of a new COVID wave would have reduced demand for the public offering of an airline.

Jeh Wadia, the son of Chairman Nusli Wadia, had resigned from boards of company groups including Britannia Industries and Go Airlines during mid-2021. This sudden move hinted at a dispute within the Wadia family. However, the company stated that this move was due to its decision of transferring operational control to other non-family individuals.

Bottom Line

The low mortality rate of the Omicron variant has made investors and experts view this wave as a near-term risk for the aviation sector. They believe there will be a strong rebound in air travel by the end of this year. Experts claim that Go Airlines will be back with its IPO plans quite soon.

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Source: Economic Times

Frequently Asked Questions

1. Who are the lead managers of Go Airlines IPO?

ICICI Securities Limited, Citigroup Global Markets India Private Limited, and Morgan Stanley India Company Private Limited are the lead running managers of Go Airlines IPO.

2. Where will shares of Go Airlines be listed?

Shares of Go Airlines will be listed on both BSE and NSE.

3. What is the price band of equity shares for Go Airlines IPO?

Go Airlines has not yet finalized the price band of equity shares for its IPO.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.