NEW DELHI: Indian budget carrier Go Airlines Ltd has filed for an initial public offering aiming to raise 36 billion rupees ($491 million), a move that comes as airlines try to bolster finances to cope with the latest disruptions caused by the pandemic.
A second wave of Covid-19 infections in India is taking a heavy toll on domestic airlines, which were taking initial steps back towards normality after a nationwide lockdown hampered their operations in 2020.
The company, which is in the process of rebranding itself as “Go First”, plans to use the money raised from the IPO to repay loans, which total more than 20 billion rupees, and clear other dues, it said in a filing.
“The Covid-19 pandemic has had an adverse impact on our business... the duration and spread of the pandemic or another pandemic could result in additional adverse impact on our business,” Go Airlines said in the filing.
The airline has a current fleet of 55 Airbus narrow body planes and is due to take delivery of 98 more starting this year.
The airline’s founder and majority owner is the Wadia group, which runs textiles company Bombay Dyeing and Manufacturing Co Ltd and biscuit maker Britannia Industries. — Reuters
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