GoAir gets initial share sale nod from India’s market regulator

Go Airlines India has got the green light from the nation’s market regulator to raise 36b rupees ($485m) through an initial public offering, according to a person familiar with the matter. GoAir’s share sale was put on hold in June by the Securities and Exchange Board of India. The airline now expects to file a preliminary prospectus in about three weeks, the person said, asking not to be identified because the information isn’t public. Local media reported the approval from Sebi earlier Friday. A share sale would come at an opportune time for debt-laden GoAir, which is losing money and plans to rely on proceeds from the IPO to repay debt and dues to creditors. The carrier, in the process of rebranding itself as GoFirst, has obligations that totaled around 81.6b rupees as of mid-April, according to its draft preliminary prospectus. Mumbai-based GoAir has long marketed itself as a budget airline, but its expenses are higher than competitors, an analysis by Bangalore-based wealth manager Capitalmind in May showed.<br/>