Low-fare carrier GoAir, now christened Go First, received SEBI's nod for its initial public offering (IPO) on Thursday.
Go First had first filed its draft red herring prospectus (DRHP) in May. However, in June, the market regulator temporarily suspended the Go First IPO due to a pending inquiry against the Wadia group, which owns 73.33 percent stake in Go First, and the Bombay Dyeing Manufacturing Company Limited, also led by Nusli Wadia.
In June this year, Bombay Dyeing and its promoters were issued a show-cause notice from the Sebi's Corporation Finance Investigation Department (CFID) for alleged financial irregularities.
Nonetheless, Go First, is planning to raise Rs 3,600 crore through its IPO. The airline, which has been flying for more than 15 years now, also aims to raise Rs 1,500 crore through a pre-IPO placement. The proceeds of the IPO are expected to be used for paying existing dues, according to an Economic Times report.
According to Go First's DRHP filed in May, the company had a net debt of Rs 7,346 crore and a negative net worth of Rs 1,961 crore as of December 31, 2020. Besides, cash flow from operations fell from Rs 1,738 crore in FY20 to Rs 232 crore for the first nine months of FY21 for Go First.
Like other air carriers, Go First has also been reeling under losses owing to the COVID-19 pandemic. The airline is yet to pay Rs 254.93 crore to Indian Oil Corporation for fuel supplied to it.
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