The approval came earlier on Thursday. Sebi had kept the proposed IPO in abeyance and had raised some queries with the Wadia Group-owned airline.
The approval came at a time when Wadia Group scion Jeh Wadia, one of the founder-promoters of Go First, resigned from the boards of Britannia Industries and Bombay Burmah Group, thus exiting all listed companies under the conglomerate. He had stepped down as managing director of Go Airlines in March. A month later, he quit as MD of Bombay Dyeing and Manufacturing Co.
“Sebi has cleared the proposal with some observations,” said one of the people cited above.
Another said the airline can now move to the next step of filing the final red herring prospectus incorporating Sebi’s comments. It can also start road shows to garner investor interest. He added however that it wasn’t clear if it would find the market conducive now for an IPO.
The airline, in May rebranded Go First, had filed the draft red herring prospectus (DRHP) on May 14. Sebi had kept it in abeyance as of June 11, according to the Sebi website.
According to a disclosure in the DRHP, the board and the shareholders had approved the re-appointment of Wadia as the managing director of the airline for five years from January 1, 2021, subject to certain conditions and an agreement.
But Wadia “did not execute the agreement with the company to formalise his reappointment as the managing director. Further, with a view to professionalise the company, it was decided not to proceed with the proposed formal agreement to be entered into with Jehangir Nusli Wadia, for a period of five years from January 1, 2021. Accordingly, upon expiry of his term, he was deemed to have vacated office as managing director and director, with effect from December 31, 2020”.
In another…
