Go First (Go Airlines) IPO

About Go Airlines IPO

After weathering the turbulent times of the pandemic-triggered travel restrictions, Go Airlines is planning to launch its IPO in a new avatar. As a part of the turnaround plan, the Wadia Group-owned ultra-low-cost carrier, earlier known as Go Air, has rebranded itself as Go First. Between FY19 and FY21, the airline has been consistently facing rough weather. Even in the first half of FY22, the company made a loss of ₹923 crore on account of higher fuel and maintenance costs. But with travel restrictions being removed, the airline will be hoping to scale new heights.

The net proceeds raised through the Go Airlines IPO will be used for reducing debt. The Go First Airlines IPO will also help the company to repay fuel dues to Indian Oil Corporation. The money raised from the Go Air IPO will also be used to replace the letters of credit, given to aircraft lessors with cash deposit. 

Here are the key Go Airlines IPO details:  

Financial snapshot

A quick look at Go Airlines IPO’s strengths, risks and threats

Strengths  

1. Positioning itself as an ultra-low-cost carrier and focusing on maintaining low unit costs and high utilisation 
2. As of September 2021, it had a fleet inventory of 57 aircrafts 
3. The fuel-efficient A320 NEOs constitute 82% of its fleet size. This helps it cut down on fuel costs 
4. On an expansion spree with an order book of 98 A320 NEO aircrafts. These will be received in tranches till FY25
5. The average age of its aircraft was 3.7 years, making it the youngest average fleet age among Indian low cost carriers
6. Has established strong positions in slot-constrained airports such as New Delhi, Mumbai, Ahmedabad and Pune
7. Has the third highest aircraft average utilisation with 12.9 hours per day 

Risks and threats

1. Pandemic-like situation could trigger a fresh round of restrictions on mobility
2. Inability to pay rent for aircrafts under lease between February 2020 and March 2021
3. Its consolidated indebtedness stood at ₹8,160 crore, as on 19 April 2021
4. Faces intense competition from Air India, IndiGo and SpiceJet. This could lead to pricing pressure
5. Operates in the airline industry, which is characterised by low profit margins and high fixed costs
6. Has incurred losses in the past
7. Its market share had risen from 8.8% in FY18 to 10.8% in FY20. However, it was again back to around 8.5% as of November 2021

Go Airlines IPO details

| Go Airlines IPO date

The company has filed its Draft Red Herring Prospectus (DRHP) with the market regulator SEBI. It has also received a nod from SEBI to launch its IPO. But the Go Airlines IPO’s opening date – in other words, the Go Airlines IPO launch date – hasn’t been announced yet. The Go Airlines IPO closing date also hasn’t been declared. Along with these dates, investors will be updated about the Go Airlines shares allotment date. 

Investors, who receive allotment, can expect Go Airlines shares to be credited in their demat account after the allotment date. Besides this, the Go Airlines IPO listing date hasn’t been announced yet. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. Stay tuned with Uptox for all the key updates about the Go Airlines IPO.

| Go Airlines IPO price band

The Go Airlines IPO is a book-built issue. The Go Airlines IPO price band hasn’t been set yet. The price band is a price range within which investors can apply for the IPO. When the Go Airlines IPO opens, interested investors will have to choose a price within the band to apply for the public issue. 

Also, the Go Airlines IPO listing price will be determined on the listing date. The listing price is the price at which the shares of a company make their debut on the stock exchanges. 

| Go Airlines IPO lot size

The Go Airlines IPO details haven’t been declared. Hence, the Go Airlines IPO lot size also hasn’t been announced yet. It’s important to note that an investor can apply for a minimum of 1 lot. Meanwhile, according to the news reports, the Go Airlines IPO issue size could be around ₹3,600 crore. 

How to apply for the Go Airlines IPO?

If you are interested in this investment opportunity but unsure how to apply for the Go Airlines IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Go Airlines IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Go Airlines IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Go Airlines IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Go Airlines IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Go Airlines IPO allotment status will be mentioned

Open a demat account with Upstox to apply for the Go Airlines IPO

To apply for the Go Airlines IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the Go Airlines IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  

You can apply for the Go Airlines IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.