GoAir IPO Updates
The Wadia-Group’s GoAir is planning to raise about Rs 1500 crore through an IPO by the end of this year. They are now working on the preparation of draft red herring prospectus (DRHP). The IPO strategy right for GoAir is the current news in the stock market. The IPO thought is not new for the GoAir. In 2015, it had already done some works on it. At the time it gained momentum when the Indian aviation sector is dealing with tepid growth in air travel and volatile crude oil prices.
Investors’ estimations and investment risks also hit in the past two months. Between January and June 2019, the benchmark S&P BSE Sensex had gained 10 percent. However, the overall gains down just 3% year to date.
Moreover, the airline has observed a slight fund growth in the equity market during the first half of this year (H1CY19) via IPO. As per the source, Analysts have allotted a listless H1CY19 to the overall market sentiment and overall economic polt has kept companies from raising fresh capital.
It may be the best for the aviation sector, experts said. Because they considered a given backdrop, budget carries Goair plans to raise funds via IPO does create attention over its timing, route, and success. Even though the IPO tepid in 2019.
IPO Strategy Right For GoAir
At this time, Analysts feel that may open expansion routers for GoAir, which has not truly gained benefits of the vacuum created by Jet Airways. May it will take 9 to 10 slots of a jet, due to the lack of funds.
As of Head of Research, the vacuum has been created in the market for the expansion of airlines. It has doubled its fleet size within two years. In July, GoAir added 50th aircraft in its fleet.
According to the reports, The airline stocks have performed well than the benchmark indices. In the last year, Spicejet and IndiGo airlines have maintained well the frontline S&P BSE Sensex. At that them, the former Grew gained 66 percent, the letter gained 51 percent. At the same time, Sensex had declined only 3 percent. The experts say that the IPO Strategy Right For GoAir.
However, GoAir will list its IPO in the third quarter of Fiscal Year 2020.
Disclaimer: The given information is taken from the press releases, not our estimations or website.