Go Airlines (India) Ltd

About the Company:

Go Airlines (India) Ltd is an ultra-low-cost carrier (“ULCC”) focused on maintaining low unit costs and delivering compelling value to customers that drives our unit revenues.

Company is one of the fastest growing airlines in India, with an increase in domestic market share from 8.8% in fiscal 2018 to 10.8% in fiscal 2020.

As a ULCC, company is focused on maintaining a low-cost base and high utilization of our modern and fuel-efficient fleet.

As of February 10, 2021, company’s fleet inventory consisted of 56 aircraft, of which 46 aircraft were A320 NEO models and 10 were A320 CEO models.

The average age of company’s aircraft was 3.7 years, which, according to CAPA, was the youngest average fleet age among Indian LCC carriers and one of the youngest fleets of any LCC globally.

As of January 31, 2020, company has covered a network of 28 domestic and nine international destinations.

 

 

Company’s Employees.

As of December 31, 2020, company had 3,370 employees, including 479 pilots and 869 cabin crew, as well as various others, including maintenance and overhaul personnel and ticketing and sales personnel.

 

Order Book of Aircrafts:

Company currently has an order book of 98 A320 NEO aircraft and expect to take delivery of eight additional A320 NEOs, in fiscal 2022, 14 in fiscal 2023 and 14 in fiscal 2024 and expect to take deliveries of the balance aircraft from fiscal 2025 onwards.

We have the highest percentage of next generation aircraft in our fleet in India. We expect that by the end of fiscal 2024, our fleet will solely comprise A320 NEO aircraft.

 

Key Operating Parameters: 

 

 

Key Performance Parameters: 

 

 

Management Team:

  1. Mr. Nusli Neville Wadia (Designation: Chairman and Non-Executive Director)
  2. Mr. Ness Nusli Wadia (Designation: Non-Executive and Non-Independent Director)

 

 

 

 

Objectives of the Issue:

  • Prepayment or scheduled repayment of all or a portion of certain outstanding borrowings availed by the Company.
  • Replacement of letter of credits, which are issued to certain aircraft lessors towards securing lease rental payments and future maintenance of aircrafts, with cash deposit.
  • Repayment of dues to Indian Oil Corporation Limited, in part or full, for fuel supplied to the Company.
  • General corporate purposes.

 

 

 

 

 

Positives for the Company:

Strong promoter background,backed by the Wadia group.

  • Company is backed by Wadia group, which is a part of one of the oldest conglomerates in India with presence in several diversified industries, including FMCG, real estate, textiles, chemicals and food processing.

 

 

Indian Aviation market is one of the fastest growing Market.

  • The indian aviation market has grown from 76 million passengers in 2010 to 208 million passengers in 2020, which is the fastest growing aviation market globally and company is uniquely positioned to benefit from this expected growth in traffic.

 

 

Continuous Increase in Market share.

  • Company’s passenger volume increased at a CAGR of 22.4% from 10.8 million passengers in fiscal 2018 to 16.2 million passengers in fiscal 2020.
  • Company’s market share of domestic passenger volume increased from 8.8% in fiscal 2018 to 10.8% in fiscal 2020. Further, in the current fiscal year, company has added three new A320 NEOs to our network to support the expected growth in demand.

 

Established strong positions in slot-constrained airports.

  • Company’s route network is designed to support operational efficiency and includes capacity in slot-constrained markets in India.
  • As of January 31, 2020, company covered a network of 28 domestic and nine international destinations.
  • Company has established strong positions in slot-constrained airports such as New Delhi, Mumbai, Ahmedabad and Pune, with the second-best overall Slot Efficiency in India during the period from fiscal 2018 to fiscal 2020.

 

 

High aircraft utilization and high load factor.

  • Company had high aircraft utilization during fiscal 2020, with an average utilization of 12.9 hours per day with a high load factor of 88.9%.

 

 

Rebranding the Airline.

  • Company is now poised for its next phase of growth as a ULCC. Towards achieving this objective, company has re-branded the airline to “Go First” and have already commenced the use of the “Go First” trademark and brand name and are in the process of transitioning all operations under this new brand.

 

 

Company operates fuel-efficient and next generation fleet.

  • Around 82% of company’s fleet comprises NEO aircraft which are 17-20% more fuel-efficient than CEO aircraft with the lightest configuration.
  • All of company’s aircrafts have high-density seating with a seating capacity of 186 passengers for the NEO aircraft and 180 passengers for the CEO aircraft.
  • In addition, the average fleet age was 3.7 years as of February 2021, which is one of the youngest fleet ages in India and globally.

 

 

Financials of the Company:

(in Crores) FY 18 FY 19 FY 20 31st Dec 20
Revenue 4601.1 5936.7 7258.0 1438.4
Net Profit (-31.2) (-386.6) (-1270.7) (-470.6)

 

 

Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Go Airlines (India) Ltd 10 (-82.48) N.A N.A (-94.6)
Interglobe Aviation Ltd 10 (-6.07) N.A (4.0) 152.8
Spicejet Ltd 10 (-15.57) N.A N.A (-26.34)

 

 

IPO Details:

Details Info
Issue Opens on Coming Soon
Issue Closes on:. Coming Soon
Issue Price Will be Updated
Face Value Will be Updated
Retail Category Allocation Will be Updated
Minimum Lot Will be Updated
Minimum Investment Will be Updated
Issue Constitutes Will be Updated
Issue Size Will be Updated
Market Cap Will be Updated
Listing at NSE & BSE
Equity Shares Offered Will be Updated
Equity Shares Prior Will be Updated
Equity Shares after the issue Will be Updated

Also Read : List of Upcoming IPO’s in India.

 

Important Dates:

Finalization of Basis of Allotment Will be Updated
Initiation of Refunds Will be Updated
Credit of Equity Shares: Will be Updated
Listing Date: Will be Updated

 

Subscription Details:

(Subscription-Category-Wise (no. of times) Till time : 00:00) Shares Offered Day-1 Day-2 Day-3
QIB
NII
Retail
Employee
TOTAL

 

IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
(-82.48) NA NA (-94.6)

 

 

Check IPO Allotment Status:

Link InTime: https://linkintime.co.in/PublicIssue/

BSE IPO Website: https://www.bseindia.com/IPO/Allotment

 

Company Contact Info:
Go Airlines (India) Ltd
First Floor, C-1, Wadia International Centre,
Pandurang Budhkar Marg, Worli,
Mumbai 400 025, Maharashtra
Telephone no.: (+91 22) 6741 0000
E-mail: compliance.officer@goair.in
Website: www.goair.in

 

IPO Registrar Info:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai 400 083, Maharashtra
Telephone no.: (+91 22) 4918 6200
E-mail: goair.ipo@linkintime.co.in
Website: www.linkintime.co.in