Wadias-owned-Go Airlines (India) Ltd has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise up to Rs 3,600 crore through a share float.

GoAir proposes an initial public offer (IPO) through the 100 percent book-building process and the company will offer fresh equity shares aggregating up to Rs 3,600 crore.

From the issue proceeds, GoAir proposes to use Rs 2,016 crore towards the repayment or scheduled repayment of all or a portion of certain outstanding borrowings, around Rs 279 crore towards replacement of letters of credit with cash deposit and Rs 255 crore as repayment of dues to IOC in part or full.

The airline, which launched operations in 2005 as GoAir, has recently re-branded itself as “Go First” as it positions itself as an ultra low-cost carrier (ULCC) focused on maintaining low-unit costs and delivering compelling value to customers. The DRHP said that the new brand will better reflect its customer acquisition strategy of targeting young Indian leisure and MSME travellers.

Once listed, it will be the third airline on the bourses after IndiGo (represented through parent Interglobe Aviation) and SpiceJet. Though Jet Airways is listed on the stock exchanges, it is yet to begin operations under the new owners.

GoAir operates a fleet of 55 aircraft as on March 31, 2021, all of which are Airbus A320 aircraft. The company has agreed to purchase a balance of 98 Airbus A320 NEO aircraft, according to the aircraft delivery schedules under its purchase agreements with Airbus. It expects to add eight aircraft in the current fiscal, 14 in the next financial year and the rest after that.

GoAir is the country’s third-largest airline by market share.