GoAir plans to file for IPO in next fiscal, aims to raise Rs 2,500 crore

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However, a GoAir spokesperson denied commenting on the speculation, in response to an e-mail query sent to the airline's chief executive officer, Kaushik Khona.

A few days ago, a CNBC-TV18 report, quoting sources, had stated that the airline planned to raise around Rs 4,000 crore for its IPO. "The company is likely to raise Rs 3,500-4,000 crore via issuance of over 25 percent equity. Funds raised will be used towards debt retirement and working capital," sources told CNBC-TV18.

As of March 2020, the Wadia Group promoted company's debt stands at Rs 1,780 crore. Do note, as per the annual report for FY20, Bombay Burmah, Britannia, or Bombay Dyeing have no stake in the airline.

Also read: Ex-Jet Airways CEO Vinay Dube mulls starting a domestic airline in 2021

Last week, GoAir’s promoter Jeh Wadia resigned as managing director and former Spirit Airlines CEO Ben Baldanza was appointed vice-chairman. In 2011, Baldanza had successfully led the Spirit Airlines IPO. The Mint report quoted Baldanza as saying that this gave him an opportunity to apply years of airline experience in the fast-growing market of India.

The budget carrier started operations in 2005, and flies to 39 destinations, including 10 international locations. At present, SpiceJet and IndiGo are the only two Indian carriers that are listed in the stock market. Jet Airways and Kingfisher Airlines were two are Indian carriers listed on the bourses. Both airlines ceased operations after going bankrupt.