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Go Air IPO delay may force airline to borrow more, seek funds from promoters

Prospects appear dim for the airline as it competes with two rivals to raise funds and its market share shrinks ahead of the leanest quarter for air travel.

June 29, 2021 / 05:29 PM IST
Representative image

Representative image

The Securities and Exchange Board of India has kept the processing of Go Airlines (India) Ltd’s share sale documents in abeyance.

This means the carrier that’s being rebranded as Go First may have to look at other options to sustain operations until it is allowed to raise funds by listing on the bourses. The airline plans to raise Rs 3,600 crore as part of its listing on the stock exchanges, according to its draft red herring prospectus dated May 13, 2021.

The airline’s rebranding exercise hasn’t progressed beyond the website, where it came on much after full-page advertisements proclaimed the change from ‘Go Air’ to ‘Go First.’

None of its aircraft has been repainted with the new logo and even photos on websites that track aircraft deliveries show that the planes it has ordered from Airbus are being produced with the current ‘Go Air’ livery.