BENGALURU, May 14 (Reuters) - Indian budget carrier Go Airlines Ltd filed for an initial public offering of up to 36 billion rupees ($491 million), a move that comes as airlines scramble to bolster their finances to tide over disruptions caused by a raging pandemic.
A second wave of COVID-19 infections in India is taking a heavy toll on domestic airlines, which were barely limping back to normalcy after a nation-wide lockdown hampered their operations for months in 2020.
The company, which is in the process of rebranding itself as "Go First", plans to use the money raised from the IPO https://www.icicisecurities.com/Upload/ArticleAttachments/Go%20Airlines%20(India)%20Limited-Draft%20Red%20Herring%20Prospectus.pdf to repay loans and clear dues, it said in a filing.
The Mumbai-based airline said it had defaulted on payments of several of its aircraft lease agreements and that it had not been able to negotiate any deferral agreements for these defaults so far.
"The COVID-19 pandemic has had an adverse impact on our business ... the duration and spread of the pandemic or another pandemic could result in additional adverse impact on our business," Go Airlines said.
Indian carriers are expected to report total losses of $4 to $4.5 billion in the fiscal year ended March 31 and my lose a similar amount this year, aviation consultancy CAPA India said in a note earlier this month. company's offering may also include further share issues worth up to 15 billion rupees, according to the filing.
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