Go Airlines is to come up with an IPO

Go Airlines, India’s fourth-largest airline in India is to come up with an IPO to raise funds. The issue size of the IPO will be around Rs 3,600 crore. The face value of each share will be around Rs 10. The equities of this company are listed at BSE and NSE.

About Company

Go Airlines operates in an ultra-low-cost carrier (“ULCC”) focused on maintaining low unit costs and delivering compelling value to customers that drive the company's unit revenues. Go Air is one of the fastest-growing airlines in India, with an increase in domestic market share from 8.8% in the fiscal year 2018 to 10.8% in the fiscal year 2020. As of February 10, 2021, the company's fleet inventory consisted of 56 aircraft.

Industry Overview

In recent years, India has been the fastest-growing large aviation market in the world. Among the world’s ten largest aviation markets, India had been the fastest growing over the previous four years, posting a CAGR of 12.1%. As result, it had improved its ranking from the sixth position in 2015 to become the third-largest market in absolute terms in 2019, behind the USA and China.

The number of domestic airline passengers in India in Fiscal Year 2020 (13.72 crores) was just over double the number of international passengers (6.65 crores).

The expenditure of Indian travelers is expected to grow to USD 136 billion (Rs 9.5 lakh crore) by 2021.