Go Airlines Limited IPO

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Go Airlines is an ultra-low-cost carrier (“ULCC”) focused on maintaining low unit costs and delivering compelling value to customers that drive their unit revenues. It is one of the fastest-growing airlines in India. Their target customers are young Indians and MSME businesses, and it believes their product and service offerings are uniquely attractive to these large and growing segments of the Indian population.
As a ULCC, it is focused on maintaining a low-cost base and high utilization of the modern and fuel-efficient fleet. As of February 10, 2021, the fleet inventory consisted of 56 aircraft, of which 46 aircraft were A320 NEO models and 10 were A320 CEO models.
It currently has an order book of 98 A320 NEO aircraft and expects to take delivery of eight additional A320 NEOs, in fiscal 2022, 14 in fiscal 2023 and 14 in fiscal 2024.
This expects growth in traffic due to focus on (i) leisure travellers within India; (ii) leisure travellers from India travelling overseas; (iii) MSME business travellers; (iv) route connectivity between Tier 2 and Tier 1 cities and Tier 2 and Tier 3 cities; and (v) frequency of flights between Tier 1 and Tier 2 cities.
Their passenger volume increased from 10.8 million passengers in fiscal 2018 to 16.2 million passengers in fiscal 2020. Its market share of domestic passenger volume increased from 8.8% in fiscal 2018 to 10.8% in fiscal 2020. Further, in the current fiscal year, they have added three new A320 NEOs to our network to support the expected growth in demand.
As of January 31, 2020, it covered a network of 28 domestic and nine international destinations. It has established strong positions in slot constrained airports such as New Delhi, Mumbai, Ahmedabad and Pune, with the second-best overall Slot Efficiency in India

Competitive Strengths
(i) Simple, fuel-efficient and next-generation fleet
(ii) Strong focus on operational efficiency
(iii) Selling experiences for the young Indian leisure and MSME traveller

Objects of the Go Airlines Limited IPO:

The Company proposes to utilize the Net Proceeds in (i) Repayment of all borrowings (ii) Replacement of letter of credits (iii) Repayment of dues to Indian Oil Corporation Limited (iv) General corporate purposes
DRHP of Go Airlines Limited IPO

Go Airlines Limited IPO Details:

Issue Size: 3600 Cr.

Promoters And Management:

(i) Nusli Neville Wadia, is the Chairman of the Board and a Non-Executive Director of the Company. He studied at the Rugby School. He is an Indian industrialist. He is the chairman of various companies of the Wadia group, including the Bombay Dyeing and Manufacturing Company Limited, Britannia Industries Limited, and The Bombay Burmah Trading Corporation Limited. He has been a director on the board of several foreign and Indian companies. He joined the Company on June 1, 2004. He was also the chairman of The Cotton Textiles Exports Promotion Council of India, and the Mill Owner’s Association. He has served as a convenor on the Prime Minister’s Council on Trade and Industry. He was the convener of the Special Group Task Force on Food and Agro Industries Management Policy in November 1998. (ii) Ness Nusli Wadia, is a Non-Executive and Non-Independent Director of the Company. He holds a master of science degree in engineering business management from the University of Warwick. He currently serves as the managing director of The Bombay Burmah Trading Corporation Limited, chairman of National Peroxide Limited, and as a director on the board of directors of other companies of the Wadia group including Britannia Industries Limited, and Bombay Dyeing and Manufacturing Company Limited. He is also a member of the audit committee of Britannia Industries Limited, of the finance committees of Britannia Industries Limited; and of the corporate social responsibility committee of The Bombay Dyeing and Manufacturing Company Limited, Britannia Industries Limited, and National Peroxide Limited. (iii) Keki Manchersha Elavia, is an Independent Director of the Company. He holds a bachelor’s degree in commerce from the University of Bombay. Heis a fellow member of the Institute of Chartered Accountants of India. He was associated with both Kalyaniwalla & Mistry LLP and S.R. Batliboi& Co., Chartered Accountants in the capacity of a partner. He has over 40years of experience in audit and finance related matters

Comparison With Peers:

To be updated shortly

Recommendation on Go Airlines Limited IPO:

To be updated shortly

Lead Manager of Go Airlines Limited IPO:

  1. Citigroup Global Markets India Private Limited
  2. ICICI Securities Limited
  3. Morgan Stanley India Company Private Limited

Registrar of Go Airlines Limited IPO:

  1. Link Intime India Private Limited

Company Address:

C/O Britannia Industries Limited, A-33, Lawrence Road Industrial Area, New Delhi 110 035, National Capital Territory of Delhi Telephone no.: (+91 11) 7156 8136

Discussion on Go Airlines Limited IPO:

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