admin 
GoAir, established in 2004 and owned by the Wadia company, began operations in 2005 and has carried 80 million passengers. The firm operated flights to 28 domestic and nine overseas destinations. Every day, over 300 flights are performed. According to a 2017 survey, it is the country’s fifth-largest airline carrier. This airline’s target clientele consists of young professionals, leisure travelers, and MSME business travelers. The company’s primary goal is to maximize profits by keeping a low-cost base and making the most use of its fuel-efficient, contemporary fleet.
Jeh Wadia, GoAir’s Managing Director, and Promoter left last week, and Ben Baldanza, the former CEO of Spirit Airlines, has been appointed as GoAir’s Vice Chairman. They’ve been considering for Go Airline India IPO, to go public for a few years, but various squabbles in upper management have kept the process stalled. The Wadia group owns 73.3 percent of the corporation, while Baymanco Investment Ltd holds 21.50 percent.
Go Airline India IPO
Go First, formerly known as GoAir, is an ultra-low-cost airline (ULCC). It is one of India’s fastest-growing airlines, with a domestic market share that has increased from 8.8 percent in fiscal 2018 to 10.8 percent in fiscal 2020. GoAir had a debt of Rs. 1,780 crores in FY20. In 2020, the company reported a net loss of 1271 crores. Covid impacted the industry, which has since improved. They are now working on hubs in Mumbai, Delhi, Bangalore, Kolkata, Chandigarh, and Kannur. The company intends to use only A320 NEO aircraft in its fleet. They are rapidly expanding ultra-low-cost carriers (ULCC). Go First’s public offering consists of new issuances of equity shares totaling up to Rs. 3,600 crores.
Go Airline India IPO Date
The company has not announced the IPO(Initial Public Offering) Dathasd has only decided to take the company to the public. When the company announces the date, you can visit the company website, check the Kotak Securities website, or visit any online stock trading app to get a notification.
Why Invest in Go Airline India IPO?
Here are some reasons why Go Airlines’ public offering could be an excellent investment.
- The company has been in operation for nearly two decades and is one of the most successful airlines in the country. As a result, its revenue figures will also show a progressive increase.
- Go Airlines’ operational motto has not changed. Instead, it has sought to make airline travel more affordable, favorably received by India’s increasing middle-class population.
- Go Airlines operates profitable routes that connect more than 25 destinations. Aside from metropolitan areas, it focuses on operations in tier-II locations to help it build its consumer base. Furthermore, the organization operates in ten prominent overseas destinations in South-East Asia and the Middle East.
- Go Airlines’ operational efficiency and strong backing from the Wadia Group have helped sustain its stability over the years and, hopefully, in the future.
SWOT Analysis of Go Airline India IPO
Strengths
- Market presence- Go Airlines has been in business for almost 15 years and has a strong market presence. Meanwhile, the corporation has amassed a sizable consumer base and brand following. As a result, its market share has risen from 8.8 percent in the fiscal year 2018 to 10.8 percent in the fiscal year 2020. Furthermore, it operates flights on 31 domestic and ten foreign routes, allowing the airline to increase its revenue.
- Efficient and experienced management- The Wadia Group backs and manages the company. Furthermore, it has been able to adopt an efficient business model by operating on popular routes and in potential locations over the years.
Weakness
- Financial insecurity: The company is currently experiencing financial difficulties. The COVID-19 pandemic and accompanying lockdown left a massive hole in its earnings, which will take time to fill.
Opportunities
- New planes are going: Go Airlines will get new aircraft during the next two fiscal years. It will allow the organization to extend its operations and serve a more diverse and broad market.
- India’s thriving tourism market: Following the shock of COVID-19, India’s tourism industry is rebounding. It is fantastic news for Go Airlines because ticket bookings will steadily increase.
Threats
- Rising fuel prices: The rise in international gasoline prices will have a negative impact on this industry.
Growth Opportunity
In the past, publications and studies were undertaken by independent agencies projected a bright future for the Indian aviation industry. The numbers, however, reveal a different narrative. Every year, just a tiny percentage of the Indian population takes a flight. Nevertheless, the total number of passengers that flew in India in 2019 was 144.2 million. Ryanair, a low-cost airline, based in Europe, had the highest number of passengers.
The Indian airline sector has traditionally devoured the funds of its investors and promoters. However, there is no disputing that there are prospects for growth. There are stories about Air India and Jet Airways, and on the other, there is an IndiGo success story. It will be interesting to see how GoAir uses the funds it intends to raise, how the ultra-low-cost carrier game unfolds, and which side of the story the firm ends up with. Finally, it will be interesting to see if GoAir’s IPO affects the airline’s fortunes in these times.
How Can I Apply for an IPO?
The following points can help you in applying for an IPO:
- You can open any online stock trading app, such as the Kotak Stock Trading App.
- Log in to your Kotak Securities account and navigate the current IPO section.
- Enter the number of lots and the price you want to apply for.
- Enter your UPI ID and press the submit button. Your bid will be submitted to the exchange as a result of this.
- You will receive a mandate notification to restrict funds in your UPI app.
- If you approve the mandate request on your UPI, your funds will be blocked.
