Wadias to invest Rs 300 cr in Go First
For several months, the airline has lost significant business in an otherwise upbeat domestic aviation market.
Nusli Wadia-owned Go First will receive Rs 600 crore more as promoter equity and bank debt by April end. The Wadia family and banks would provide Rs 300 crore each. This investment has been approved in the board meeting held on Tuesday.
As per reports, in the last 20 months, the promoters have invested Rs 3,000 crore and will provide another Rs 290-300 crore as equity by the end of April. An additional Rs 300 crore is expected to come in the form of bank debt under the Emergency Credit Line Guarantee Scheme (ECLGS) scheme of the Indian government by April or May.
Go First, which made its highest annual financial loss to date in FY22, has been tackling huge operational issues in the past few months as half of its aircraft have been grounded due to supply chain disruptions pertaining to Pratt & Whitney (P&W) jet engines. For several months, the airline has lost significant business in an otherwise upbeat domestic aviation market. Wadia group is also looking for a strategic investor and is talking to potential investors..