Go Airlines (India) Limited IPO Company Profile
Promoted by Wadia Group, Go Airlines is one of the 5th largest airlines company in India with a daily operational flight of more than 300 flights covering 36 destinations across the world. Currently, Go Airlines service is available for 27 domestic destinations and 9 international destinations with an inventory of 56 aircraft out of which 46 aircraft are A320 NEO and 10 are A320 CEO Models.
Incorporated on April 29, 2004, GoAir is an ultra-low-cost carrier ("ULCC") introduced with the motive to make air travel more affordable and accessible to the majority of people in India. The company's main focused customers are mainly young Indians and MSME businesses. And to attract their customers they try to offer unique offers and lucrative rates to the masses and a growing class of people in India.
Go Airlines IPO Details:
|Issue Type||Book Built Offer|
|Issue Size (Value)||–|
|Fresh Issue||Rs. 3600 Crore|
|Offer for Sale||–|
Go Air IPO Date:
The exact date of Go Airlines IPO has not been yet declared but it has already applied an addendum to its DRHP, on November 10. The DRHP was filed with SEBI on May 14, 2021, and it got the green signal from SEBI on August 31, 2021, to launch the IPO. But the company has not yet declared the specific date to launch the IPO, and maybe it has to refile its IPO papers with the SEBI if the IPO is not launched within the specified period.
Go Airlines IPO Price & Size:
The share price of Go Airlines IPO has not been yet officially declared. The price band to bid into Go Airlines IPO will be announced along with the date of the IPO opening and closing. The size of G Airlines IPO is Rs. 3600 crore out of which Rs.254.93 crore the company is likely to use for paying for the upkeep and maintenance of the aircraft.
Go Airlines Financials Performance:
|Particulars (in Rs. Cr.)||As at/ for the year ended December 31, 2020||As at/ for the year ended March 31, 2020||As at/ for the year ended March 31, 2019||As at/ for the year ended March 31, 2018|
|Net cash inflow/ (outflows)||232.08||1737.8||1995.19||1407.35|
Promoters & Shareholding Patterns of the Company:
Nusli Neville Wadia, Jehangir Nusli Wadia, Ness Nusli Wadia and Go Investments are the Promoters of our Company. The Wadia group has a 73.3% stake in the company, while Baymanco Investment Ltd owns a 21.50% stake.
Go Airlines IPO Objectives:
- Go Airlines is looking to raise funds through an IPO for paying the debt of the company.
- Part of the fund raised through IPO will be used in repayment of dues to fuel supplied to the company.
- Repayment of letter of credit that has been issued to aircraft lessor.
- And few parts of the fund will be used for general corporate purposes.
Why Invest in Go Airlines IPO?
Go Airlines is one of the fastest-growing airlines in India with a growing domestic market share from 8.8% in fiscal 2018 to 10.8% in fiscal 2020. The airline is focused to maintain low unit costs and deliver compelling value to customers that drive the overall revenue growth of the company. Though, this airline company running into a loss, there are a few positive outlooks that you can consider if looking to invest or subscribe to the Go Airlines IPO.
- India is one of the fastest-growing aviation industries in the world with a wide scope of increasing the number of passengers across the regions.
- India has improved its ranking in the aviation market from 6th position in 2016 to the third position in 2019, behind US and China.
- Go Airlines is gaining market share due to the competitive advantage of low-cost airlines.
- The young customers are focused who are growing rapidly with their rising per capita income, making air travel affordable to mass people in India.
- Go Airlines operating with a fleet of next-generation aircraft like the A320 NEO that is highly fuel efficient, leads to improved bottom-line margins in the long-term.
- It has further going add more similar aircraft to enhance the passenger capacity.
- Go Air has ordered 98 A320 NEO aircraft that are expected to get delivered gradually 8 A320 NEOs in FY2022, 14 in FY2023 and 154 in FY2024.
- Despite being 3.7 yrs old, it is one of the leading airline companies in India.
- Increased the market share from 8.8% in FY2017-18 to 10.8% in FY2019-20.
- The third-highest aircraft utilization company with 12.9 hours/day in India.
- Revenue from passengers has grown at a CAGR of 24.8% from 2018 to 2020.
- Unexpected increases in air turbine fuel prices will affect the operating cost of the company.
- Unexpected situations like Covid-19 can affect passenger travel which will directly affect the revenue of the company.
- Go Airlines is running into a loss for the last three years. And it might take time to become profitable.
- The aviation industry involves lots of high fixed costs and operates at very low-profit margins.
- There are multiple other factors that can affect the airline's business like delays in the delivery of ordered aircraft, regulatory guidelines, emergency landings, accidents and competitors' strategies.
Go Airlines IPO Allotment Status
IPO allotment status gives investors the details about the number of shares allotted to them in an IPO
Go Airlines IPO allotment status would be available soon after the IPO closure date. Usually, the allotment comes within a week from the IPO closing date which in this IPO is yet to be announced.
One can check the IPO allotment on the below link with YOUR PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-
Go Airlines IPO Allotment Status
- Go, Click to Application Status
- Select Go Airlines IPO
- Enter your PAN Number or Application Id or DP Client Id.
Go Airlines IPO GMP:
As the launch date and price of Go Airlines IPO have not been yet declared, the GMP is not possible to evaluate. Once the price is declared, it will be analyzed and evaluated compared to its peer members, and then as per the demand in the grey market, it can estimate the GMP of the Go Air IPO.
Go Airlines IPO Analysis & Review:
Go Airlines is no doubt getting the advantage of high-volume passenger growth due to ultra-low-cost carriers in the industry. Despite intense competition, its market share increased significantly and is likely to further grow, which will help in improving the topline and bottom-line growth of the company.
While on the other hand, being a loss-making company, it seems very difficult for the company to generate high cash flow from internal operations. Losses will lead to borrowing that burdens the interest cost to the company, affecting the operational cost and eventually the bottom line margins of the company.
However, if the IPO price is fairly valued compared to its peer members, and issued at a discounted price, it can be considered to invest with a long-term perspective. As Go Airlines is merely a 3.7-year-old company and with the time being, the passenger volume will grow which can generate high revenue. High revenue growth and improved operational cost will help to improve the profit margins, than can help this company become profitable with a significant market share in the aviation sector.