SEBI puts GoAir IPO approval process in abeyance

The Securities and Exchange Board of India has put in abeyance the initial public offering (IPO) approval process of no-frills carrier Go Airline (India) Limited. GoAir, which has rebranded itself as Go First, plans to raise up to Rs 36 billion through its proposed IPO and use the net proceeds of the IPO mainly to repay debt. The airline is planning to utilise Rs 20.16 billion for the payment and scheduled repayment of outstanding borrowings, Rs 2.79 billion for the replacement of letters of credit with cash deposits for securing lease rental payments and aircraft maintenance from leasing companies, and Rs 2.55 billion to repay dues to Indian Oil Corporation Limited towards jet fuel purchases.