GoAir (now Go First) to Launch IPO : Check IPO Date, Share Price, Subscribe or Not

After a long wait, GoAir has finally filed the DRHP (Draft Red Herring Prospectus) with SEBI (Securities and Exchange Board of India) on 13th May 2021. Thus, it will launch its IPO in the coming days. We will be checking its important dates, share price, and whether you should subscribe or not in this read.

GoAir’s IPO is coming with a valuation of Rs 3,600 crores. In this process, it has also changed its name from GoAir to Go First. GoFirst promises ULCC (ultra low cost carrier) which means that travellers will now get air tickets at a much lower price. This IPO will be taken care of by ICICI Securities, Citigroup and Morgan Stanley.

The highly anticipated GoAir IPO will be opening soon. Its official dates are not out yet so stay tuned.

The share price of GoAir IPO will be revealed by the company soon after its launch, but if rumors are to be believed then the final prices will be as shown below.

Go Airlines was started in 2005. It is among the leading airlines for domestic and international flights in India. Let's have a look at the positives and negatives of the GoAir IPO to decide whether you should subscribe to this issue or not.

Go Airlines is among the flight companies which are hit due to Covid-19. As compared to its peer Indigo Airlines, it has around 5X less aircrafts. Moreover, it suffered a net loss of Rs 1,278.60 crores in 2020 according to MCA (ministry of corporate affairs). A Tofler (research company) report says that it was Rs 1,500 crores down in net worth as of 31st March 2020. Besides, its cash & cash equivalents were Rs 112 crores.

GoAir which is now Go First promises to level-up their operations and cater to young Indian leisure and MSME travellers. Moreover, they have implemented the ULCC (ultra low cost carrier) model for lowest airfares. Besides, Indigo, SpiceJet, and AirAsia follow a LCC (low cost carrier) model so it is a plus point here. Moreover, it garnered a net profit of Rs 123.34 crores in 2019 as per MCA.

Considering the current situation, it is unlikely that GoAir will boom its business in a short time. Thus, investors looking for long term gains can give it a go considering the company’s strong management. Although, if it draws in fine investments from anchor investors then most probably it will list strong on the stock market.

What are your views on the GoAir IPO? Will it contribute to the IPO boom in India 2021 or crash down? Do let us know in the comments below.

Disclaimer: We are not SEBI registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestion. Consult your financial advisor before making any decision.