Indian funds carrier GoAir files for $491 mln IPO

The logo of GoAir airline is pictured on an A320neo aircraft on the builder's headquarters of Airbus in Colomiers approach Toulouse, France, November 15, 2019. REUTERS/Regis Duvignau

Indian funds carrier Whisk Airways Ltd has filed for an initial public offering aiming to elevate 36 billion rupees ($491 million), a pass that comes as airlines are trying and bolster funds to address essentially the most modern disruptions attributable to the pandemic.

A 2d wave of COVID-19 infections in India is taking a heavy toll on domestic airlines, which were taking initial steps wait on in the direction of normality after a nationwide lockdown hampered their operations for months in 2020.

The company, which is at some stage in of rebranding itself as "Whisk First", plans to converse the cash raised from the IPO to repay loans, which total more than 20 billion rupees, and obvious totally different dues, it stated in a submitting.

"The COVID-19 pandemic has had an detrimental impact on our enterprise ... the length and unfold of the pandemic or but one more pandemic might perchance well consequence in extra detrimental impact on our enterprise," Whisk Airways stated in the submitting.

The airline has a recent fleet of 55 Airbus (AIR.PA)slim body planes and is on tale of desire shipping of 98 more starting this year.

The airline's founder and majority owner is the Wadia community, which runs textiles company Bombay Dyeing and Manufacturing Co Ltd (BDYN.NS) and biscuit maker Britannia Industries (BRIT.NS).

The company's portion offering might perchance well also encompass an additional portion disaster price as a lot as 15 billion rupees, the submitting stated.

India's airlines are beneath renewed stress to elevate cash or desire steps to downsize or consolidate. They are expected to legend total losses of $4 to $4.5 billion in the fiscal year ended March 31 and must lose a identical amount this year, aviation consultancy CAPA India stated. read more

Whisk Airways has stated it deliberate to pass in the direction of being an extremely-low-price carrier, which would normally offer no-frills skedaddle at rock-bottom fares, while charging extra for bags.

The community in March promoted exchange conventional and aged CEO of U.S. carrier Spirit Airways (SAVE.N) Ben Baldanza to vp from director. Baldanza lead the repositioning of Spirit as an extremely-low-price carrier and took the airline public in 2011.

ICICI Securities, Citigroup World Markets India (C.N) and Morgan Stanley India (MS.N) are the lead bookrunning managers for the IPO to list on Indian stock exchanges.

($1 = 73.3490 Indian rupees)

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