GoAir has filed the draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) for its initial public offering. The Wadia group-owned airline plans to raise Rs 3,600 crore through a fresh issue of shares.
A draft red herring prospectus, also known as an offer document, is a preliminary registration document prior to an public offering. The GoAir IPO will be managed by ICICI Securities, Citigroup and Morgan Stanley.
GoAir started operations in 2005 and has over 50 aircraft in its fleet. Ahead of the IPO, GoAir announced on Thursday that it has rebranded itself as 'Go First' as it will focus on ultra-low-cost business model amid the pandemic.
Go First as ULCC (ultra-low-cost carrier) will operate single aircraft type across its fleet, which currently has both Airbus A320 and A320Neos (new engine option) planes in operation. An ultra-low-cost carrier (ULCC) is more affordable than a low-cost carrier (LCC). However, the fliers have to pay extra for baggage, seats and food.