Go Airlines Put IPO Plan on Hold

Nusli Wadia Group has temporarily put a hold on the ₹3,600-crore initial public offering (IPO) plan of its Go Airlines considering the third wave of Covid-19 and its impact on the travel business. The company is evaluating the pandemic situation led by the Omicron variant and is in discussions with its bankers about the IPO. The investors are watching and analysing the impact of Omicron spread on the health and travel plans of consumers before committing investments in the aviation sector.

Go Airlines (India) had filed for the IPO in May last year and received market regulator Sebi’s nod in August. In addition to the ₹3,600-crore public issue, it was planning to raise another ₹1,500 crores through a pre-IPO placement. However, all fundraising plans have been put on hold for the time being and the group is expected to infuse additional capital in Go Airlines as it needs capital for operational expenses. It was originally scheduled to do the IPO listing by December 8. “The company was all set to go with the listing, which would have helped the company to further expand the operations, but the group decided to hold it or put off for the time being as it needs to settle some of the issues within,” said the official quoted first. “Also, with the latest wave of Covid, people travel only for essential things, which will further dampen demand for an airline company IPO.”