Go Airlines planned IPO put on hold by India market regulator

Go Airlines India’s plans to raise 36b rupees ($485m) via an IPO have been put on hold by India’s market regulator, dealing another blow to the debt-laden carrier whose business has been decimated by the coronavirus pandemic. Go Airlines’ share sale documents will be “kept in abeyance,” the Securities and Exchange Board of India said in a filing late Monday, without specifying the reason why. A spokeswoman for Go Airlines said the company hasn’t received any communication from Sebi. That delay is sure to be damaging to Go Airlines, which was depending on the IPO proceeds to repay debt and dues to creditors including Indian Oil Corp. Go Airlines, a no-frills carrier controlled by the Wadia Group, is saddled with obligations that totaled around 81.6b rupees as of mid-April, according to its preliminary prospectus. Any recovery in air travel in India also looks to be postponed, with fears record vaccinations may not stop a deadly third wave. Indian carriers will need about $5b to survive but only have access to about $1.1b through share offerings and other means, according to the CAPA Centre for Aviation. IndiGo, India’s biggest carrier, and the nation’s flag carrier, Air India, will account for the bulk of the $8b in losses by 2022, CAPA said.<br/>