SpiceJet, 2 others in race to bid for bankrupt Go First; share price surges 20%

Lenders of Go First are scheduled to convene a meeting later this week week to make decisions on the future course of action.

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26 Aug, 2025 12:21

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India's budget airline Spicejet, Sharjah-based Sky One company, and Africa-focused Safrik Investments have reportedly shown interest in buying the bankrupt carrier Go First.

The three have requested the resolution professional overseeing Go First's corporate insolvency resolution process (CIRP) to conduct due diligence on the grounded airline, CNBC-TV18 reported.

The request came in after the deadline for submitting proposals passed and with lenders considering the possibility of liquidating the airline, the report cited banking sources as saying.

Moneycontrol couldn’t verify the report independently.

Also Read: Go First: None of the 2278 employees on rolls are reporting for work, RP tells Delhi HC

Go First, promoted by the Wadias, filed for voluntary insolvency before the National Company Law Tribunal (NCLT) in May. The crisis-hit airline attributed its decision to engine supplier Pratt & Whitney (PW), alleging that the increasing incidents of failures of engines supplied by the US-based firm’s International Aero Engines forced its hand.

With significant expertise in the aviation sector, SpiceJet is considered a serious contender but the airline's ongoing struggle for its survival has led bankers to approach the situation with scepticism.

Despite its industry knowledge, the challenges faced by the cash-strapped carrier raised concerns among financial institutions evaluating its potential involvement in the acquisition process, the report cited the sources as saying.

Also Read: SpiceJet gets board nod to raise Rs 2,254 crore from shares, warrants

Last week, SpiceJet announced plans to raise more than Rs 2,250 crore by issuing up to 130 million convertible warrants and 320.8 million fresh equity shares at an issue price of Rs 50 each.

The airline would issue these convertible warrants to 64 allottees, including Prabhudas Lilladher Advisory Services, LKP Finance, Martina Developers, and Fincon.

The proposed fund infusion is expected to support SpiceJet in its potential acquisition of Go First, sources said.

Lenders of Go First are scheduled to convene a meeting later this week to make decisions on the future course of action, sources said.

Go First’s total liabilities reportedly amount to Rs 11,463 crore, with bank dues accounting for Rs 6,521 crore. The airline's financial health, including its substantial liabilities, was a significant factor in the ongoing resolution process and discussions with creditors, sources said.

Shares of SpiceJet saw a significant surge, reaching almost 20 percent, to achieve a fresh 52-week high in December. This increase in share price came in the wake of news indicating the airline's interest in acquiring the bankrupt carrier Go First. SpiceJet's stocks on December 18 witnessed a notable jump of 19.56 percent, reaching Rs 64.07 apiece, compared to the previous closing value of Rs 53.58 on the BSE.