Indian conglomerate Wadia Group is once more considering taking its wholly-owned subsidiary GoAir (Mumbai International) public as it looks to shore up the LCC's capital reserves.
Company sources told CNBC TV18 India's Moneycontrol that GoAir had already set about talking to prospective IPO managers and underwriters.
"GoAir is back in the market and is in talks with investment banks like Citi and Morgan Stanley as well as law firms and will soon finalise its advisers," they said. "It is keen on an initial public offer as part of which it plans to raise between INR17.28-20.74 billion Indian rupees (USD250.3-300.4 million), though a final call has not been taken on the issue size as the discussions are at a preliminary stage."
Proceeds from the listing will be used to fund GoAir's Airbus order backlog which currently stands at 113 A320neo.
"Considering the proposed size of the IPO, GoAir may also look at tapping overseas institutional investors as well. In terms of timing, as of now, based on the pace of discussions and documentation, the earliest the issue can be launched is December or during the January to March time-frame," another source told Moneycontrol.
GoAir currently operates sixteen A320ceo and thirty-four A320neo on scheduled flights to 28 cities spanning India, the United Arab Emirates (UAE), Thailand, and the Maldives.
