Mumbai: No-frills airline GoAir plans to come out with a ₹2,500 crore-initial share sale early next fiscal, according to sources, news agency PTI reported.
GoAir has been working on expansion plans and an Initial Public Offer (IPO) will help in raising funds. GoAir flies to 39 destinations, including 10 international ones.
The budget carrier, which started operations in 2005, has been contemplating about going public in the last couple of years. The airline, which has also been witnessing frequent churns in the top management, could not come out with the IPO on a few occasions earlier.
“GoAir is gearing up to raise funds to the tune of around ₹2,500 crore from public investors and is likely to initiate this process with the filing of DRHP (Draft Red Herring Prospectus) around the second week of April,” one of the sources said told PTI.
Consultations are progressing with ICICI Securities on the modalities of the proposed IPO, the sources said.
According to them, Citigroup and Morgan Stanley are also involved in helping GoAir with its IPO plan.
In response to an e-mail query sent to the airline’s CEO Kaushik Khona, a spokesperson said, “as a policy, GoAir does not comment on market speculation”.
SpiceJet and IndiGo are the two Indian carriers which are trading on the bourses.