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Go Airlines IPO

Go Airlines or Go First has been one of the stand-out aviation companies when it comes to affordable travelling via sky. Incorporated in 2004, Go Airlines aimed to make airline travel pocket-friendly, and 17 years down the line, the company has been successful in its mission. Being a part of Wadia Group, one of India’s oldest business conglomerates, the company has fared well over the years. Besides connecting more than 25 major cities of this country, the company also operates in the 10 international routes as well. Currently, its international operations are limited to South-East Asia and Middle-East. As of September 2021, Go Airlines has a fleet of 57 aircraft. This includes 50 A320 NEO and 7 A320 CEO aircraft. Additionally, the company is set to expand its fleet in the next two financial years.

Go Airlines IPO Objectives

- Making scheduled payments or prepayment of selected borrowing by the company
- Replacing letter of credit issued to specific aircraft lessors in the form of a cash deposit for lease rental payments and further maintenance of these aircrafts
- Fully or partly meeting the current outstanding with the Indian Oil Corporation for the supply of fuel
- Funding general corporate purposes

Go Airlines IPO - Details

According to the DRHP filed by the company with SEBI, they are planning to raise about Rs. 3,600 crores through this public issue. This will include only fresh issue equity shares, and no news of an OFS is available yet. Additionally, the company has plans for a pre-IPO placement, which, if materialised, will lower the final issue size accordingly. The market lot and price band of this IPO are not available yet, and Go Airlines has mentioned in its DRHP that it will announce it gradually. Whereas the face value of shares here is set at Rs. 10 per equity share.

Moving ahead, the promoters of Go Airlines are –
1. Ness Nusli Wadia
2. Jehangir Nusli Wadia
3. Nusli Neville Wadia
4. Go Investments & Trading Private Limited
Furthermore, Go Airlines has appointed the following firms as its book running lead managers –
1. Citigroup Global Markets India Private Limited
2. ICICI Securities Limited
3. Morgan Stanley India Company Private Limited
Along with that, Link Intime India Private Limited is the registrar of this public issue.

Opening Date

Not Announced

Closing Date

Not Announced

Price Band

₹- to ₹-

per equity share

Issue Size

₹ - Cr

Face Value

₹ Not Announced

per equity share

Market Lot

Not Announced

Opening Date

Not Announced

Closing Date

Not Announced

Price Band

₹- to ₹-

per equity share

Issue Size

₹ -

Face Value

₹ Not Announced

per equity share

Market Lot

- Shares

Listing at NSE, BSE

Go Airlines IPO Important Dates

IPO Open Date Not Announced
IPO Close Date Not Announced
Basis Of Allotment Date Not Announced
Initiation Of Refunds Not Announced
Credit Of Shares To
Demat ACcount
Not Announced
IPO Listing Date Not Announced

Why should you invest in Go Airlines?

Here are the reasons why the public issue of Go Airlines can be an ideal investment option

1. The company has been operating for almost two decades and has been one of the most successful airline companies of this country. Its revenue figures will reflect a gradual progression as well.
2. The operational motto of Go Airlines has remained the same. It has worked to make airline travel pocket-friendly, which has landed well with the growing middle-class segment in India.
3. Go Airlines operates in routes that are profitable and connect more than 25 cities. Apart from the metropolitans, it also focuses on operations in tier-II cities, which aid it to expand its customer base. Additionally, the company operates in 10 popular international destinations spreading across South-East Asia and the Middle East.
4. Operational efficiency and strong backing from the Wadia Group helps to maintain the stability of Go Airlines over the years, and hopefully in future as well.

Financial highlights

Financial Year Total Assets Total Income Total Expenses Profit After Tax
March FY2020 Rs. 1,40,820.3 Rs. 72,580.1 Rs. 91,617.3 Rs. (12,707.4)
March FY2019 Rs. 1,11,342.8 Rs. 59,367.5 Rs. 68,459.4 Rs. (3,866.0)
March FY2018 Rs. 75,535.4 Rs. 46,011.5 Rs. 47,043.6 Rs. (312.1)
**Amount is mentioned in millions

How to apply for Go Airlines IPO?

You can apply for the Go Airlines IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Go Airlines IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Go Airlines IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

Go Airlines – Noteworthy Highlights

Here are some noteworthy highlights associated with the initial public offering of Go Airlines that you should go through before putting your money on the line –

1. Between the financial year 2010 and 2020, Go Airlines has flown 83.8 million passengers.
2. The company also holds the record of least flight cancellations in FY2021, as of January 2021. Additionally, Go Airlines has the least number of customer complaints in FY2021, till January 2021.
3. Go Airlines maintained the 2nd highest loan factor in FY2020 with 88.9%.
4. Go Airlines has maintained on-time performance for consecutive 15 months between September 2018 and November 2019.

Go Airlines IPO - SWOT Analysis

strengths

Strengths

  • Strong market presence: Go Airlines has been in the business for more than 15 years. In the meantime, the company has curated a strong customer base and brand following. As a result, its market share has increased from 8.8% in FY2018 to 10.8% in FY2020. Moreover, it runs flights in 31 domestic and 10 international routes that help the company to expand its revenue.
  • Efficient and experienced management: The company is backed and managed by the Wadia Group. Also, over the years, it has managed to implement an efficient business plan by operating in popular routes and places with potential.
Weaknesses

Weaknesses

  • Financial instability: The company is currently going through a torrid time financially. The COVID-19 pandemic and subsequent lockdown left a gaping hole in its revenue, which will take some time to recover.
Opportunities

Opportunities

  • The incoming fleet of new aircraft: Go Airlines, over the course of the next two fiscal years, will receive new aircraft. This will aid the company to expand its business further and cater to a more diverse and broader market.
  • India’s booming tourism market: The tourism industry of India is recovering after the shock of COVID-19. It is good news for Go Airlines as ticket booking figures will also increase gradually.
Threats

Threats

  • Rising fuel prices: The rise of fuel prices in the International market will have an adverse effect on this industry.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Product variation: Star Health Insurance has a vast portfolio of products and services. The insurer offers health insurance policies, travel insurance covers and accident insurance policies. The variation in offering allows this insurer to capture a larger market share and cater to a diverse range of target customers.
  • Business growth: In the last couple of years, individuals are keener on getting insured. With a solid reputation in the insurance market segment and quality offerings, Star Health Insurance is in a better position to divert the current insurance trends in its favour.

Weaknesses 

  • Common offerings: Star Health Insurance offers coverage plans and policies that are not exactly unique. The common features, similar nature of offerings and stagnant innovation could weaken the company’s long-term prospects.

Opportunities 

  • Awareness about financial planning: As more individuals become financially aware and want to account for financial liabilities independently, the demand for insurance policies is rising. By tapping into this demand and the growing awareness about the importance of health insurance, this company can expand its market presence.
  • Growth prospects: Strong financials and a greater market share can prove useful in the long-term if the company decides to expand its service offerings and area of expertise further.

Threats 

  • Competition: Almost all insurance companies offer similar products and services. This means substitute products and offerings are readily available to potential customers. The rising competition in the market increases the fear of losing potential and existing customers to companies that cater to niche areas.

Competitor Analysis: Market Peers

Here is an overview of how the listed market peers of Go Airlines are performing on 23 November 2021 –

Competitor Face value Sector P/E Market Cap. Dividend yield
TAAL Enterprises Ltd 10 32.40 Rs. 369 crores 1.69
SpiceJet Limited 10 32.40 Rs. 5,078 crores NA
Global Vectra Helicorp Limited 10 32.40 Rs. 80 crores NA
Taneja Aerospace & Aviation Ltd. 5 32.40 Rs. 182 crores NA
Jet Airways Ltd. 10 32.40 Rs. 1,038 crores NA
Interglobe Aviation Ltd 10 32.40 Rs. 83,940 crores NA

Go Airlines IPO FAQs

What is the application process of the public issue of Go Airlines IPO using the Angel One App?

To apply for an IPO, follow the step-by-step guide mentioned below –
Step 1: Go to the ‘investment opportunities’ option on the Angel One mobile app
Step 2: Visit the ‘IPOs and FPOs’ section and enter the needed details
Step 3: Provide your NPCI certified UPI handle
Step 4: Now click on ‘invest’ and provide your bid for this Go Airlines IPO

Is it possible to apply for Go Airlines’ public offering without a UPI ID?

Yes, you can apply for the IPO of Go Airlines without using a UPI ID using the ASBA process provided by your bank. If you do not have a UPI ID currently, you can generate one without any hiccups by referring to any of the UPI handles stated on the NPCI List.

Is it possible to bid for the Go Airlines IPO using a current account?

No, you cannot bid for the public issue of Go Airlines or any other IPO using a current account. Since financial institutions do not approve any bids filed through such accounts, alternatively, you can use a savings account for this purpose. Moreover, you can talk to the representatives of your respective banks for further information.

Is it important to accept a UPI mandate request promptly?

Yes, it is crucial to approve a UPI mandate request as soon as you receive it. Nonetheless, the window of approval remains active from the closing bell of the previous working day to the 12 noon of the next working day.

Can I bid for the initial public offering of Go Airlines using my minor daughter’s account?

No, you cannot bid for the initial public offering of Go Airlines or any other IPOs using your minor daughter’s via the Angel One platform. On the other hand, a minor can bid for IPOs through the ASBA process.

Is it possible to bid for the Go Airlines IPO via a HUF or Hindu Undivided Family account?

No, you cannot bid for the initial public offering of Go Airlines using a Hindu Undivided Family account using an Angel One account. Nonetheless, if you apply for any public issue through the ASBA process, then you can use this account.

What is the process of accepting UPI mandate requests for the Go Airlines IPO?

Accepting the UPI mandate of the Go Airlines IPO or any public issue is not an issue. One can easily do it using a UPI App. Nonetheless, to learn about the details of this process and associated steps.

What is the time required to receive a UPI mandate request after submitting an application for this IPO?

The minimum time required to receive a UPI mandate request following the submission of an application for this Go Airlines IPO is 10 to 15 minutes. However, this process can get delayed at times due to various reasons.

How to create a UPI ID using the BHIM app?

To generate a UPI ID using the BHIM app, you can follow the below-mentioned steps –
Step 1: Download and install the BHIM UPI app on your smartphone
Step 2: Check and validate your mobile number and create a PIN or password required to manage this app
Step 3: Select a bank from the list of financial institutions provided on NPCI’s approved list of service providers
Step 4: BHIM UPI App will then collect your bank account information automatically
Step 5: In case you have more than one bank accounts, pick the one that you want to register and connect with this app
Step 6: Generate a personal UPI ID for security reasons
After that, you can check your UPI ID in the ‘Profile’ section of this app.

I cannot find my UPI ID in the dropdown menu of the Angel One App when submitting bids for this public issue. What can be the reason?

In case you cannot locate your UPI ID under the dropdown menu of the Angel One App, it means your current UPI ID does not have NPCI’s approval. In such a case, you can just create a different one with any of the UPI handles allowed and declared under the NPCI List.

Is it possible to apply for this IPO without utilising a bank account not connected with the Angel One app?

Yes, it is possible to apply for the public issue of Go Airlines using a bank account, which is not connected with the Angel One app. In such a case, this bank account should be in your name.

What is the reason behind my failure to submit bids for the IPO through my current UPI handle?

The reason for your inability to apply for the initial public offering of Go Airlines via your present UPI ID is that it may not have the required approval from NPCI. In such cases, you can create a new one from the list of providers who have NPCI’s authorisation to extend UPI service. You can just register with any one of them and complete an IPO application.

What is the projected time required to unblock or block the funds of an IPO subscription?

After you accept a UPI mandate request, banks will freeze the funds required for an initial public offering. But, these funds will be unblocked only if you fail to secure an allotment or if the UPI mandate expires. However, if your funds are not unblocked even after that, get in touch with your bank for further clarification.

How to find my UPI ID in the Angel One mobile app?

You can locate your UPI ID in the ‘profile’ section of an Angel One app. Also, you can click here to learn about this procedure in length and how to access it across different apps.

I have accepted the IPO mandate request for Go Airlines’ public issue, but its status on the Angel One App is showing pending. What is the reason behind that?

In case you see a pending status against your mandate request of the Go Airlines IPO or any other, you cannot do anything. The reason being, this Angel One App is capable of showing real-time updates of UPI Mandate requests. However, if you have approved it, it will then show its actual status on the order book of that IPO after some time.

Are there any additional charges necessary to apply for this initial public offering of Go Airlines?

No, there are no add-on charges required to apply for the Go Airlines IPO through the Angel One platform.

Is it possible to submit multiple bids for a public issue via a single PAN?

No, you cannot submit multiple bids for a public issue via a single PAN. The reason is, if you do that, your application for that initial public offering will not get approved as per the existing rules. Resultantly, you will fail to secure any allotment for the public offering of Go Airlines or any other IPO.

What are the possible reasons behind the rejection of my Go Airlines IPO application?

Plausible reasons for your Go Airlines IPO application getting rejected can be –
● Failing to assure that your UPI ID, Demat account, and bank account are linked with the same PAN
● Providing a wrong UPI PIN during mandate approval
For instance, in case you use your Demat account to bid for this public issue and use your friend’s UPI ID to make payment. In that case, your application can get rejected –
● If your PAN and your friend’s UPI ID are not linked
● If your Demat account is not connected with your friend’s bank account

What is a cut-off price? Can I apply for a public issue at this price?

The cut-off price is a price point at which the shares of Go Airlines or other companies will be listed on the stock market. This is a pre-set price and is principally set during the allotment stage. Moreover, if you bid at this price, it implies that you are willing to bid for Go Airlines’ IPO at this price point. Also, applying at this cut-off price improves your chances of securing an allotment.

I have submitted the final application for this Go Airlines IPO; but, the funds are not debited. So, what is the reason?

The reason for the funds not being debited is that banks do not release funds of an IPO subscription right after you submit a bid. Instead, they will freeze this amount for the time being, and once you receive the allotment, they will debit it eventually. On the other hand, if you fail to get an allotment or your UPI mandate expires, banks will release this amount.

Is it possible to change my subscription bid for the IPO of Go Airlines after finalising the application?

Yes, it is possible to change your subscription bid for the initial public offering of Go Airlines even after finalising the application. Here, you have the provision for altering the UPI Id and the lot size after submitting your bid. Nevertheless, a point to keep in mind here is that if you make any modifications after approving your UPI mandate request, it will be considered as a new bid. In such cases, banks will block the required amount once again and alongside your current bid amount. Also, you will get a new UPI mandate request for this bid, like before.

How to get guaranteed allotment for this public issue of Go Airlines?

It is not possible to ensure allotment for any IPO, irrespective of the public issue you decide to apply for. In case of an oversubscription, which is a regular affair, the allocation of shares is completed via a lottery system. So, it is not possible to provide any certainty in this regard.
A point to remember here is that the Angel One platform only allows you to apply for an IPO, and it does not offer any guarantee regarding the allotment.
Nonetheless, you can still boost up your chances by following some tips –
● Applying at the cut-off price
● Using a Demat Account linked with your PAN
● Confirm that your bank account and UPI ID are linked through a single PAN, and failing to keep that can lead to rejection.
For instance, person X has applied for the Go Airlines IPO via his Demat Account but person Y’s UPI ID. In such cases, the application can get rejected due to –
● Person Y’s UPI ID is not linked with X’s PAN
● Person X’s Demat account is not linked with Y’s bank account

Is it possible for NRIs to utilise the Angel One app to apply for this Go Airlines IPO?

No, NRIs cannot use the Angel One app to submit bids for this Go Airlines IPO. But, they can always take the assistance of the ASBA (Application Supported by Blocked Amount) process offered by their respective banks to apply for any public issue.

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