Aviation sector giant GoAir
GoAir, a company owned by the Wadia Group, is set to raise funds from the primary market through an IPO.
Preparation to file DRHP with SEBI in April
For this IPO, the company can file draft Red Herring Prospectus (DRHP) with the market regulator SEBI in the Second Week of April 2021. Sources associated with the matter had earlier told CNBC-TV18 that GoAir will issue around 25 per cent equity shares of the company to raise Rs 3500 to 4000 crores but now reports are coming that the company will bring an IPO of Rs 2500 crores.
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According to the report, the funds raised through this IPO will be used by the company to repay its debt and to meet the needs of working capital. Let us tell you that till March 2020, the company had a debt of Rs 1780 crore. According to sources, GoAir has appointed ICICI Securities, Citi and Morgan Stanley as its lead managers for this IPO.
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It is worth noting that GoAir provides services on a total of 30 routes including 10 international routes. Last month, the company got a credit line of Rs 800 crore from banks, which will help the company to meet its needs in this time of crisis due to Kovid. According to the March 2020 Annual Statement, Bombay Burmah, Britannia and Bombay Dyeing have no stake in GoAir.