Incorporated in the year 2004, GoAir is an ultra-low-cost carrier (ULCC) airline focused on providing affordable and accessible air travel to the people. The company’s target customers are young Indians, leisure customers, and MSME business travellers. The company is focused on maintaining a low-cost base and high utilization of its modern and fuel-efficient fleet.

Go Air IPO Detail

As of February 2021, GoAir’s fleet inventory consisted of 56 aircraft. The company has an order book of 98 A320 NEO aircraft and by the end of fiscal 2024, GoAir is planning its fleet to solely be comprised of A320 NEO aircraft. The company’s passenger volume has increased at a CAGR of 22.4% from 10.8 Mn passengers in FY 2018 to 16.2 Mn passengers in FY 2020. As of January 2020, GoAir covered a network of 28 domestic and 9 international destinations.

The company is in the process of re-branding itself as “Go First” and has already started using the “Go First” trademark and brand name.

Go Airlines IPO Objective

Making scheduled payments or prepayment of selected borrowing by the company
Replacing letter of credit issued to specific aircraft lessors in the form of a cash deposit for lease rental payments and further maintenance of these aircrafts
Fully or partly meeting the current outstanding with the Indian Oil Corporation for the supply of fuel
Funding general corporate purposes

POSITIVES

NEGATIVE

GO AIRLINES IPO DETAILS

IPO Opening Date:

IPO Closing Date:

Issue Type : Book Built Issue IPO

Face Value: ₹10 per equity share

IPO Price: [.] to [.] per equity share

Market Lot:

Min Order Quantity:

Listing At: BSE, NSE

Issue Size:

Fresh Issue: [.] Eq Shares of ₹10
(aggregating up to ₹3,600.00 Cr)

GO AIRLINES IPO TIMELINE

IPO Open Date	8 Dec 2021
IPO Close Date	10 Dec 2021
Basis Of Allotment Date	Not Announced
Initiation Of Refunds	Not Announced
Credit Of Shares To Demat ACcount	Not Announced
IPO Listing Date	Not Announced

So, how does GO AIRLINES IPO Fare in Terms of Financials?

The company has been operating for almost two decades and has been one of the most successful airline companies of this country. Its revenue figures will reflect a gradual progression as well.
The operational motto of Go Airlines has remained the same. It has worked to make airline travel pocket-friendly, which has landed well with the growing middle-class segment in India.
Go Airlines operates in routes that are profitable and connect more than 25 cities. Apart from the metropolitans, it also focuses on operations in tier-II cities, which aid it to expand its customer base. Additionally, the company operates in 10 popular international destinations spreading across South-East Asia and the Middle East.
Operational efficiency and strong backing from the Wadia Group helps to maintain the stability of Go Airlines over the years, and hopefully in future as well.

Financial Details

Financial Year	Total Assets	Total Income	Total Expenses	Profit After Tax
March FY2020	Rs. 1,40,820.3	Rs. 72,580.1	Rs. 91,617.3	Rs. (12,707.4)
March FY2019	Rs. 1,11,342.8	Rs. 59,367.5	Rs. 68,459.4	Rs. (3,866.0)
March FY2018	Rs. 75,535.4	Rs. 46,011.5	Rs. 47,043.6	Rs. (312.1)

*Data in million

FINANCIAL REVIEW

GO AIRLINES IPO VALUATIONS

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VALUATION REVIEW:

GO AIRLINES IPO – SWOT ANALYSIS

Strengths

Strong market presence: Go Airlines has been in the business for more than 15 years. In the meantime, the company has curated a strong customer base and brand following. As a result, its market share has increased from 8.8% in FY2018 to 10.8% in FY2020. Moreover, it runs flights in 31 domestic and 10 international routes that help the company to expand its revenue.
Efficient and experienced management: The company is backed and managed by the Wadia Group. Also, over the years, it has managed to implement an efficient business plan by operating in popular routes and places with potential.

Weaknesses

Financial instability: The company is currently going through a torrid time financially. The COVID-19 pandemic and subsequent lockdown left a gaping hole in its revenue, which will take some time to recoverf

Opportunities

The incoming fleet of new aircraft: Go Airlines, over the course of the next two fiscal years, will receive new aircraft. This will aid the company to expand its business further and cater to a more diverse and broader market.
India’s booming tourism market: The tourism industry of India is recovering after the shock of COVID-19. It is good news for Go Airlines as ticket booking figures will also increase gradually.

Threats

Rising fuel prices: The rise of fuel prices in the International market will have an adverse effect on this industry.

COMPETITIVE ANALYSIS: MARKET PEERS

Competitor	Face Value	Sector P/E	Market Cap.	Dividend Yield
TAAL Enterprises Ltd	10	32.40	Rs. 369 Crores	1.69
SpiceJet Limited	10	32.40	Rs. 5,078 Crores	NA
Global Vectra Helicorp Limited	10	32.40	Rs. 80 Crores	NA
Taneja Aerospace & Aviation Ltd.	5	32.40	Rs. 182 Crores	NA
Jet Airways Ltd.	10	32.40	Rs. 1,038 Crores	NA
Interglobe Aviation Ltd	10	32.40	Rs. 83,940 Crores	NA

GO AIRLINES IPO GMP

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Grey market premium as on DD-MM-YYYY = Rs /Share
Grey market premium as on DD-MM-YYYY= Rs /Share
Grey market premium as on DD-MM-YYYY = Rs /Share

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