Jindal Power Emerges as Leading Contender to Acquire Go First Amidst Reports of Multiple Bidders

In a recent development, various entities have expressed interest in acquiring the insolvent airline Go First (GOW, Mumbai International), and as the dust settles, Indian steel giant Jindal Power is emerging as the front-runner. The expressions of interest (EOIs) submission period concluded on September 28, revealing Jindal Power as a top contender.

While both local and foreign airlines participated in the bidding process, it appears that the Indian steel company Jindal Power has taken the lead. Notably, two foreign applicants are reportedly out of contention due to their EOIs not meeting specified conditions.

Reports indicate that Jindal Power’s bid is gaining support from out-of-pocket lenders, especially those associated with Hisar-based Jindal Steel & Power. Go First’s resolution professional, Shailendra Ajmera, has acknowledged claims totaling USD2.9 billion from operational and financial creditors. Major lenders include the Central Bank of India, the Bank of Baroda, IDBI Bank, and Deutsche Bank. The airline, which suspended operations in May 2023, obtained approval from India’s Directorate General of Civil Aviation (DGCA) to resume operations, albeit on a scaled-down basis and subject to certain conditions.

Jindal Power, a publicly listed company on the Bombay Stock Exchange with a market capitalization of INR695 billion Indian rupees (USD8.35 billion), is currently engaged in due diligence and asset valuation for Go First. The company, owned by the Jindal family, aims to determine whether it will restart Go First independently or seek a strategic partner.

Media reports have not disclosed the identity of the two foreign carriers disqualified from the bidding process. However, it is revealed that Planit Travglobal, the exclusive general sales agent/distributor of flydubai (FZ, Dubai International), initially led the foreign contenders with a bid valued at INR270 billion (USD3.24 billion). Regrettably, lenders rejected the bid for unspecified non-fulfillment conditions, despite Planit reportedly meeting the eligibility criteria.

Other notable bidders include Spirit Airlines, easyJet, Malaysia Airlines, and local startup Jettwings Airways. The fate of the named foreign airline applicants remains uncertain, with Jettwings Airways already securing a no-objection certificate from India’s Ministry of Civil Aviation for scheduled passenger operations.

As the acquisition process unfolds, Jindal Power’s strategic moves and the ultimate fate of Go First will undoubtedly continue to capture industry attention.