Wadia Group in talks to sell stake or exit IPO- bound Go First

Indian conglomerate Wadia Group, which owns majority stake in loss-making budget airline Go First is in talks with strategic partners to either sell a majority stake or completely exit it.

According to ET reports, Go First posted its biggest annual loss in fiscal 2022 and has been facing operational problems in the last few months as half of its aircraft were grounded due to supply chain disruptions related to Pratt & Whitney (P&W) jet engines.

Wadia Group is reluctant to invest more until the issue with P&W is resolved, after infusing around 30 billion rupees ($366.2 million) in the last 15 months to keep the airline afloat, the report said.

The airline had filed papers for an initial public offering in May 2021, but coronavirus outbreaks and the P&W engine issues hindered its plans.