Go First (GOW, Mumbai International) will receive INR5.1 billion (USD61.5 million) in additional funding over the next 12 months to meet its working capital needs. The financially embattled Indian carrier's owners, the Wadia Group, will supply the funds.

According to The Business Standard, Go First held an extraordinary general meeting on December 16 and proposed raising funds by issuing 0.01 per cent compulsory convertible preference shares costing INR10 (USD0.12) each, "aggregating to INR5.1 billion on a preferential basis through private placement, through two separate issuances and allotments." The preference shares will convert to equity shares after five years at a price of INR75 (USD0.90) per equity share. The newspaper says the Wadia Group, via its Mauritius-based entity, Baymanco Investments, will take up all of the newly issued preferences over 12 months.

The airline's existing authorised share capital is INR5 billion (USD60.2 million), made up of INR4.5 billion (USD54.3 million) in equity shares and INR500 million (USD6 million) in preference shares. As a result of this capital raising, the authorised share capital will now increase to INR9.6 billion (USD115.8 million).

Go First has benefitted from multiple capital investments and government loans since the start of the pandemic. Since mid-2021, the airline has reportedly received around INR28 billion (USD337.7 million) from its deep-pocketed owners to keep flying. In addition, as recently as October, Go First secured an INR4 billion (USD48.2 million) loan from the Indian government via its Emergency Credit Line Guarantee Scheme (ECLGS).

A highly-touted 3Q 2022 IPO failed to take off, with a time limit on what's called a new draft red herring prospectus expiring in August 2022 and thereby taking the IPO process back to square one. According to the ch-aviation report, that IPO aimed to raise INR36 billion (USD434.3 million) to reduce debt, repay lessors, and boost operations. Go First hopes to relaunch the IPO at a later date to be determined by "market prospects." Notably, during the IPO process, Go First revealed it had lost INR18.1 billion (USD218.3 million) in the 12 months to March 31, 2022 – a doubling of the loss in the previous financial year.

Despite rising demand for airline travel, engine supply problems at Pratt & Whitney have 29 out of the airline's sixty A320ceo/neo grounded, causing Go First to cut flights and lose market share. Adding to the airline's financial challenges are rising fuel prices and a depreciating local currency.