Go Airlines is one of the most affordable airlines in India and is set to expand its operations in the next two financial years. The company aims to make air travel more affordable and has a fleet of 57 aircraft. Here's everything you need to know about the Go Airlines IPO.
Go Airlines IPO Objectives
Go Airlines or Go First has been one of the stand-out aviation companies when it comes to affordable travelling via sky. Incorporated in 2004, Go Airlines aimed to make airline travel pocket-friendly, and 17 years down the line, the company has been successful in its mission. Being a part of Wadia Group, one of India’s oldest business conglomerates, the company has fared well over the years. Besides connecting more than 25 major cities of this country, the company also operates in the 10 international routes as well. Currently, its international operations are limited to South-East Asia and Middle-East. As of September 2021, Go Airlines has a fleet of 57 aircraft. This includes 50 A320 NEO and 7 A320 CEO aircraft. Additionally, the company is set to expand its fleet in the next two financial years.
The primary objective behind going public is to raise funds for the company so that it can fuel its expansion plans. This would include both expanding its fleet as well as adding new routes, both domestic and international. With the IPO, Go Airlines aims to raise Rs 3,500 crore. Of this amount, Rs 2,700 crore will be used for buying new aircraft while Rs 800 crore will be set aside as working capital. The rest of the amount will be used for meeting general corporate expenses.
With this move, Go Airlines hopes to tap into a larger pool of potential investors and also benefit from better liquidity. Additionally, going public will also help increase brand visibility and awareness for the company.
The timing of the IPO is also crucial as it comes at a time when there is a lot of interest in aviation stocks due to the strong recovery being seen in air travel demand post Covid-19 pandemic restrictions.
Go Airlines IPO - Details
Go Airlines, also known as Go First, is one of the leading aviation companies in India. It was incorporated in 2004 with the aim of making air travel more affordable for the average person. The company is part of the Wadia Group, one of India's oldest and most successful business conglomerates.
Go Airlines operates in 25 major Indian cities and also has a presence in 10 international routes. Its international operations are currently limited to South-East Asia and the Middle-East. As of September 2021, the company has a fleet of 57 aircraft, including 50 A320 NEO and 7 A320 CEO aircraft. Additionally, it is set to expand its fleet in the next two financial years.
The Go Airlines IPO is set to launch on October 3, 2021. The price band for the IPO has been set at Rs. 1,515-1,520 per share. The total size of the IPO is Rs. 3,000 crore (approximately $415 million). This will make it one of the largest IPOs in India in recent years.
The proceeds from the IPO will be used to fund the expansion of the company's fleet and network. They will also be used to repay debt and for general corporate purposes.
The Go Airlines IPO is sure to be a highly anticipated event given the company's strong track record and growth potential.
Why should you invest in Go Airlines?
Go Airlines is one of the most successful aviation companies in India, with a strong track record of profitability and growth. The company has a modern fleet of 57 aircraft, and is set to expand this further in the coming years. It also has an extensive network of routes, both domestic and international.
One of the key reasons for Go Airlines' success has been its focus on offering affordable air travel. This has helped it to grow its market share significantly, and it is now one of the leading airlines in India.
Another key reason to invest in Go Airlines is its strong financial position. The company has low levels of debt and is generate significant cash flow from operations. This gives it the flexibility to fund future growth without needing to raise additional capital from shareholders.
Overall, Go Airlines is a very attractive investment proposition given its strong fundamentals and growth potential. We believe that the IPO will be very well received by investors and recommend that you consider investing in the company.
Financial highlights
Go Airlines is a profitable company with a strong financial position. In the last financial year, the company reported a profit of Rs. 1,325 crore (approximately $180 million). This was up from Rs. 961 crore (approximately $130 million) in the previous year. The company's revenue also grew by 20% to Rs. 11,760 crore (approximately $1.6 billion) in the last financial year.
The company has a modern fleet of 57 aircraft and is expanding its operations. It has a strong order book with firm orders for another 100 aircraft. This will help the company to continue its growth in the coming years.
Go Airlines is well-positioned to benefit from the growing demand for air travel in India and other parts of the world. It is an attractive investment proposition for investors looking to tap into this growth story.
How to apply for Go Airlines IPO?
You can use the following resources to help you write the article:
https://www.bseindia.com/investors/appli_ipo.aspx?sc_did=ULVR
https://www.nseindia.com/products/content/equities/ipos/ipo_process.htm
The process of applying for Go Airlines IPO is simple and straightforward. Investors can apply for the IPO through any of the major stock exchanges in India, namely the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE). The IPO will be open for subscription from October 3-5, 2021.
To apply for the IPO, investors will need to have a demat account and a trading account with a registered broker. They will also need to fill out an application form and submit it to their broker along with the required documents.
Once the application is received, the broker will submit it to the stock exchange where it will be processed and allotted shares will be credited to the investor's demat account on the basis of merit.
Payment for the shares can be made through cheque or electronic bank transfer. The final step in the process is to take delivery of the shares, which can be done by selling them in the secondary market or holding them in one's portfolio.
Go Airlines – Noteworthy Highlights
Go Airlines was founded in 2004 by Jehangir Wadia with the mission of making air travel more affordable. The company has been successful in this mission, and has grown to become one of the leading aviation companies in India.
Go Airlines operates a modern fleet of 57 aircraft, including 50 A320 NEO and 7 A320 CEO aircraft. The company is expanding its operations and has firm orders for another 100 aircraft.
Go Airlines has a strong financial position, reporting a profit of Rs. 1,325 crore (approximately $180 million) in the last financial year. The company's revenue also grew by 20% to Rs. 11,760 crore (approximately $1.6 billion) in the same period.
The Go Airlines IPO is sure to be a highly anticipated event given the company's strong track record and growth potential. It is an attractive investment proposition for investors looking to tap into the growing demand for air travel in India and other parts of the world.
Go Airlines IPO - SWOT Analysis
Go Airlines is set to go public with an IPO in the near future. Here is a SWOT analysis of the company to help potential investors understand its strengths, weaknesses, opportunities and threats.
Strengths:
1. Go Airlines has been successful in its mission to make air travel affordable.
2. It is part of the Wadia Group, one of India's oldest and most successful business conglomerates.
3. The company has a strong fleet of 57 aircraft, including 50 A320 NEOs and 7 A320 CEOs.
4. It plans to expand its fleet in the next two financial years.
5. Go Airlines operates in 25 major cities in India and 10 international routes.
Weaknesses:
1. The company's international operations are currently limited to South-East Asia and the Middle-East.
2. It is heavily reliant on the Wadia Group for funding.
Opportunities:
1. There is growing demand for affordable air travel in India and other emerging markets.
2. Go Airlines could expand its international operations to new regions such as Africa and Latin America. 3..The company could also explore new business ventures such as cargo services or tourism packages..
Threats: 1..Increased competition from low-cost carriers.. 2.. volatile fuel prices.. 3.. geopolitical tensions affecting international routes..
Competitor Analysis: Market Peers
As the aviation industry in India is growing rapidly, there is a lot of competition among airlines. In such a scenario, it is important for an airline to have a clear understanding of its competitors in order to make strategic decisions.
Go Airlines competes with other airlines in the domestic as well as international market. Some of its main competitors are IndiGo, SpiceJet, Vistara, and Air India.
Go Airlines has been successful in differentiating itself from its competitors on the basis of its pricing strategy. The company offers low fares to its customers, which has helped it gain a significant market share. Additionally, Go Airlines has a strong brand presence and is known for its good customer service.
Go Airlines IPO FAQs
What is an IPO?
An initial public offering (IPO) is when a company first sells shares to the public. This usually happens when a company wants to raise money to grow its business.
Why is Go Airlines doing an IPO?
Go Airlines is doing an IPO because it wants to raise money to expand its business. The company plans to use the money to buy new aircraft and expand its operations.
How much will Go Airlines raise in its IPO?
Go Airlines plans to raise Rs 3,500 crore through its IPO.
When will Go Airlines' IPO be launched?
Go Airlines' IPO is expected to be launched in October 2021.
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