GO First IPO: Wadia Group’s Go First Airlines IPO Listing on BSE/NSE for INR 3,600 Crores. Go Airlines (India) Ltd was established in 2004 by the Managing Director Mr. Nusli Nevilli Wadia, later rebranded as Go First in May 2021.
Go Air conducted airline businesses in an ultra low-cost carrier, ULCC, and by February 10 2021 the company maintained an inventory of 56 A320 NEO aircraft and A3220 CE aircraft. Go Air operations covered 28 domestic and 9 international destinations and made their presence in important airports like New Delhi, Mumbai, Ahmedabad, Pune, Hyderabad, etc.
Currently, Go First is an ultra-low-cost carrier, ULCC, for passengers, one of its consortiums under the parent company, Wadia Group.
An investor is advised to consider the company’s strengths and possible risk encounters (merits/demerits) before opting for an IPO yet to be released.
Go First IPO: Current Details of Go First Airlines for IPO
GoFirst IPO wants to release an issue worth INR 3,600.00 crores and the open and close dates of GO Airlines (India) Limited are yet to be released.
Link Intime India Private Limited shall be the registrar to Go Airlines and the proposed shares are to be listed on the Bombay Stock Exchange, and National Stock Exchange.
The objective of Go First IPO:
To encounter the current market competitors like IndiGo, and SpiceJet, the corporate affairs department of Go First Airlines located in the Wadia International Centre, Worli Mumbai has turned to IPO to increase the market capitalization.
Merits:
- Go First Airlines takes utmost concern about their flight crew and the passengers and ensures to provide a safe travel environment.
- The company takes adequate safety measures by utilizing the preventive maintenance check, conducted in periodical intervals.
- Go First Airlines conduct inspection and maintenance practices as per the established norms laid by the competent authority both at the national and international level.
- The aircraft fleet at Go First Airlines is said to be the youngest with 57 aircraft on board. The aviation fleet is just 36 months old and the technical reliability is above 99.6 percent.
- The Go First Airline’s market share has increased from 8.8 percent to 10.8 percent during the financial year 2017-18 and 2019-20.
- Passenger traffic increased from 10.8 million to 16.2 million from the financial year 2018 to 2020.
- The aircraft utilization is 12.9 hours per day and it stands third among their counterparts during the financial year 2019-20.
Demerits:
- Airlines are unable to make good profit margins for the higher aviation fuel rate.
- The Covid 19 issue has created a financial crunch related to liquidity/cash flows.
- The spare parts supply chain is badly hit because several airlines are unable to remit the payments.
Inventory of the Go First fleet:
The Go First has impressed five Airbus A32S-200 aircraft for international operations, each aircraft accommodating 180 passengers onboard.
Likewise, Go First has put 55 Airbus A320 Neo in service and placed an order of 89 Airbus A320 Neo in addition to serving 186 passengers on board.
Therefore, it is evident that keeping 60 aircraft in service and an order of additional 89 aircraft, is in the expansion phase of its airline services.
It was observed that a planned strategy is to be adopted that focuses on capturing market share and increasing flight operations, destinations, and even the fleet size.
Go First IPO: Financials
The company’s revenue, total assets, and profit when accounted for three years, 2018, 2019, and 2020 are as follows.
| Year | Revenue in Cr. | Total Assets in Cr. | Profit in Cr. |
| 2018 | 4601 | 7,554 | -32.39 |
| 2019 | 5937 | 11,134 | -387 |
| 2020 | 7258 | 14,082 | -1271 |
- Revenue (Year, Value in Crores) : (2018: 4601) : (2019 : 5937) : (2020 : 7258)
- Total Asset (Year, Value in Crores) : (2018 : 7554) : (2019: 11,134) : (2020 : 14082)
- Profits (Year, Value in Crores) : (2018 : -32.39) : (2019 : -387) : (2020 : -1271)
Go First Market Capitalisation
To overcome the debt burden, the promoter, the Wadia Group has made a ₹2,000 to enable the financial sustainability of Go First Airlines.
Central Bank of India provided a working capital loan of ₹2,835.00 crores to renew the airline businesses. With the disastrous business performance during Covid times, the Central Bank of India extended a loan amount of ₹300 crores.
Further, the financial Ministry has granted an emergency credit guarantee line scheme that issued to the low-cost aircraft carrier an amount of ₹25 crores
How to Apply for Go First IPO
Interested applicants can send the application and the bid through any of the broking applications such as Zerodha, Uptsox, Groww, etc.
Applying over Websites / Apps ( Zerodha, Groww, UPStox)
- Decide your favorite website/app and open the homepage.
- Seek the portfolio button and click the IPO, reach Go First Airlines, and click the bid button.
- The Applicant must enter the UPI ID, quantity, and price, and make the submission, later utilize the UPI service on the Net Banking or BHIM app to make the share-slot payment.