The travel and tourism industry is finally healing as things are getting back to normal after the pandemic. Air travel is increasing back to the numbers of pre-pandemic time. In between this, the GoFirst airline is planning to launch IPO in the month of July as the industry is efficiently recovering from the harsh effects of COVID-19. This IPO launch by GoFirst is going to be very important for this Indian airline.
This IPO Launch Of GoFirst Will Help In Clearing Their Debt
There are significant reasons behind this launch. The airline is in extreme debt and the share from this IPO will help in the process of repaying. A major portion of the proceeds of the selling of shares is going to be used for the repayment of the debt. According to the draft preliminary prospectus, GoFirst had a burden of almost ₹81.6 billion during April 2021. The plan of India’s No. 2 airline is to raise ₹36 billion through the share sale from the IPO launching in July 2022.
Also read: GoFirst, Spicejet Announce Sale With Tickets As Low as ₹2500
GoFirst received the approval to launch IPO market regulator Sebi in 2021 itself. They decided to put a temporary pause to it last year due to the outbreak of Omicron in December and the Russia-Ukraine war in February. They also did not move forward with it to prevent any sort of clashes with the IPO of Life Insurance Corporation.
The Airline Is Bouncing Back hard
GoFirst airline is functioning and operating more than usual with the skyrocketing demand for domestic flights. The number of flyers is increasing gradually with very less Covid positive cases. Almost 300 flights are running every day. In comparison to the present day’s numbers, it was 288 flights in 2019. Preparations are in full swing presently. GoFirst airline is working on the planning of expanding the capacity. Also, they are working to enlist new aircraft from August. According to the plan, they will add 10 new Airbus A320 Neos within March 2023.