Mumbai: The Jeh Wadia-spearheaded private airline, GoAir, will tap the capital market only after two years while being open to equity dilution in the form of strategic investments during the interim.
“We will come out with our initial public offer (IPO) only after two years, sometime in FY09 at the earliest,” GoAir managing director Jeh Wadia said.
The company, which achieved the highest load factor in the industry in the first three months of this year at 79%, will utilize the time to build its track record and emerge in a position to provide value to shareholders, he said.
On equity dilution in the near term, Wadia said the company had received various proposals and was evaluating them. “We have yet to take a call on whether we even want to sell a stake to investors. Then we will decide to whom to sell and at what price.”
There is no time-frame fixed for a decision on the matter, he said. The company is presently categorizing the investors into purely financial investors and strategic investors. The latter bring more than money to the table, Wadia said, adding, “We will zero in on prospective investors only after a thorough vetting of the proposals.”
On plans to enhance fleet strength, Wadia said the airline, which presently has five aircraft, would increase it to 18 by end-December 2008 and to 34 by 2011.
The company has already finalized sale and lease deals for 10 aircraft that would be inducted into the fleet from October this year.
In the meantime, GoAir, over the last four quarters, has clocked a revenue growth of 60%, a passenger growth of 50% and a load factor growth of 17%.