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May 15, 2017 01:29 PM IST | Source: Moneycontrol.com

GoAir ropes in Kotak Mahindra Capital, Axis Cap to manage its Rs 3,000-crore IPO

The Wadia family-promoted airline flies to 23 destinations in the country with a fleet of 19 Airbus A320 and three A320 neo aircraft. It awaits delivery of 141 A320 neo planes, signed as part of its two contracts with the European passenger aircraft manufacturer.

GoAir ropes in Kotak Mahindra Capital, Axis Cap to manage its Rs 3,000-crore IPO

Dhirendra Tripathi

Moneycontrol News

Go Airlines India  has handed Kotak Mahindra Capital and Axis Capital the task of managing the process of listing its shares on the stock exchanges this year, according to merchant banking sources. The initial public offering of the airline is expected to raise between Rs 2,500 crore and Rs 3,000 crore through issue of new shares with no stake sale being planned by the promoters, a source said.

The Wadia family-promoted airline flies to 23 destinations in the country with a fleet of 19 Airbus A320 and three A320 neo aircraft. It awaits delivery of 141 A320 neo planes, signed as part of its two contracts with the European passenger aircraft manufacturer. The airline had first contracted to buy 72 planes from Airbus but then doubled that order to 144 in December 2016.

It plans to start its international services soon, connecting primarily unconnected destinations in Central Asia, the Gulf, China and Vietnam.

GoAir has a passenger market share of a little less than 9 percent in the 100-million-strong Indian aviation market, trailing IndiGo, Spicejet, Jet Airways and Air India. The country’s domestic aviation market is now the third largest behind that of the US and China. The airline had a passenger load factor of 84.8 percent in March, according to data on the web site of safety regulator Directorate General of Civil Aviation.

The initial public offering of the profitable low-cost carrier has been talked about for at least two years now and with the stock market booming, the listing of the airline could finally be a reality this year.  Interglobe Aviation, the company behind airline services IndiGo, Jet Airways and SpiceJet are the only other airline operators listed on the stock exchanges.

Intense competition, subdued crude oil prices and a strong rupee have all helped to keep the fares low in the Indian market and helped the industry maintain its compounded annual growth rate of 15 percent.
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