Table of Contents
- Go Air introduction
- What are the risk factors in Go Air IPO?
- What are the competitive strengths in Go Air IPO?
- What are the objects of the Go Air IPO issue?
- What is the Financial track record of Go Air?
- Go Air IPO open date & close date
- Go Air IPO allotment & listing date
- Go Air IPO GMP
- Go Air IPO Allotment check
- Go air IPO good or bad? Review
Go Air introduction
Go First comprises fresh issuance of equity shares aggregating up to Rs. 3,600 crores.
GoAir is an ultra-low-cost carrier (ULCC). It is one of the fastest-growing airlines in India, with an increase in domestic market share from 8.8% in fiscal 2018 to 10.8% in fiscal 2020. The carrier’s fleet inventory consists of 56 aircraft and as of January 31, 2020, the airline covered a network of 28 domestic and nine international destinations
What are the risk factors in Go Air IPO?
1. The company operations are highly impacted due to the Covid-19 pandemic and affect in the future too
2. The company is a regular defaulter in their leased aircraft payment
3. The company may drop its Ultra Lower Cost Carrier(ULCC) model due to many factors
4. Go Air is rebranding to Go First, there is no surety that their new brand will be successful
5. Company has increasing debt, which may affect their business adversely
6. A high percentage of promoter holdings are pledged
7. Company is continuously incurring losses
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What are the competitive strengths in Go Air IPO?
1. The company uses fuel-efficient and next-generation aircraft
2. Increased market share in the top 10 airports of India
3. The company has a strategy targeting leisure and Businessman travelers
4. Company is showing continuous growth in revenue
5. Company has highly experienced board members
What are the objects of the Go Air IPO issue?
The Company proposes to utilize the Net Proceeds towards the funding of the following objects:
- Prepayment or scheduled repayment of all or a portion of certain outstanding borrowings availed by the Company;
- Replacement of letter of credits, which are issued to certain aircraft lessors towards securing lease rental payments and future maintenance of aircrafts, with cash deposit;
- Repayment of dues to Indian Oil Corporation Limited, in part or full, for fuel supplied to the Company; and
- General corporate purposes.
What is the Financial track record of Go Air?
- Company is incurrring continuous losses
- Company is showing continuous growth in revenue
|Financial Year Ended||Revenue (₹ Crores)||Loss for the period (₹ Crores)||EPS (₹)|
|Nine months ended December 2020||1,438.44||-470.69||-29.89|
Go Air IPO open date & close date
8th December – NA
Go Air IPO allotment & listing date
Go Air IPO GMP
Rs 90 as on 23rd Nov 2021
Go Air IPO Allotment check
Go air IPO good or bad? Review
As the IPO pricing is yet not finalized, but looking at its financials it is a loss-making company with a negative P.E ratio, When we compare with its listed peers like Spicejet airways, Indigo airways, Jet airways, all are making losses and are nearby have same financials, So after its pricing is out it will be better to review it.
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