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.
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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
|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 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)|
How to apply for Go Airlines IPO?
You can apply for the Go Airlines IPO in these ways:
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.
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
- 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.
- 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.
- 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.
- Rising fuel prices: The rise of fuel prices in the International market will have an adverse effect on this industry.
- 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.
- 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.
- 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.
- 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?
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?
Is it possible to bid for the Go Airlines IPO using a current account?
Is it important to accept a UPI mandate request promptly?
Can I bid for the initial public offering of Go Airlines using my minor daughter’s account?
Is it possible to bid for the Go Airlines IPO via a HUF or Hindu Undivided Family account?
What is the process of accepting UPI mandate requests for the Go Airlines IPO?
What is the time required to receive a UPI mandate request after submitting an application for this IPO?
How to create a UPI ID using the BHIM app?
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?
Is it possible to apply for this IPO without utilising a bank account not connected with the Angel One app?
What is the reason behind my failure to submit bids for the IPO through my current UPI handle?
What is the projected time required to unblock or block the funds of an IPO subscription?
How to find my UPI ID in the Angel One mobile app?
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?
Are there any additional charges necessary to apply for this initial public offering of Go Airlines?
Is it possible to submit multiple bids for a public issue via a single PAN?
What are the possible reasons behind the rejection of my Go Airlines IPO application?
● 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?
I have submitted the final application for this Go Airlines IPO; but, the funds are not debited. So, what is the reason?
Is it possible to change my subscription bid for the IPO of Go Airlines after finalising the application?
How to get guaranteed allotment for this public issue of Go Airlines?
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