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GO AIR IPO Check GMP, Subscription, IPO Date, And Detailed Review

Mohit
GO AIR IPO

GO AIR IPO

Table of Contents

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:

  1. Prepayment or scheduled repayment of all or a portion of certain outstanding borrowings availed by the Company;
  2. 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;
  3. Repayment of dues to Indian Oil Corporation Limited, in part or full, for fuel supplied to the Company; and
  4. General corporate purposes.

What is the Financial track record of Go Air?

  1. Company is incurrring continuous losses
  2. Company is showing continuous growth in revenue
Financial Year EndedRevenue (₹ Crores)Loss for the period (₹ Crores)EPS (₹)
March 20184,601.15-31.21-2.08
March 20195,936.75-386.60-25.47
March 20207,258.01-1,270.74-82.48
Nine months ended December 20201,438.44-470.69-29.89
Go Air Financials

Go Air IPO open date & close date

8th December – NA

Go Air IPO allotment & listing date

NA

Go Air IPO GMP

Rs 90 as on 23rd Nov 2021

Go Air IPO Allotment check

Allotment can be checked through their registrar website Link Intime India Private Ltd

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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