Wadia Group-operated GoAir’s proposed initial public offering (IPO) could be a frantic bid by promoters of the budget airline to raise funds at a time when the civil aviation sector is facing the fury of the covid pandemic.
“It seems like a desperate attempt (to raise funds) by the promoters as the Indian government is not bailing out airlines,” said Nripendra Singh, research head and strategy consultant (aviation) at Frost & Sullivan.
“IPO is possibly the cheapest way for the airline to raise money,” he said.
The Economic Times reported last week that GoAir would file its draft red herring prospectus soon with the market regulator. ICICI Securities, Citi and Morgan Stanley have been selected as merchant bankers for the proposed IPO, the report said.
