Cash-strapped airline Go First filed for bankruptcy on Tuesday, blaming "faulty" Pratt & Whitney engines for the grounding of about half its fleet and taking lenders by surprise.

Lessors may also be keen to allocate some of the Go First aircraft to IndiGo, within India itself, given similar fleet type, Credit Suisse analysts wrote in a note, adding that the development would benefit IndiGo in terms of market share and stronger yields in a capacity strained environment.

Lenders to Go First, including Central Bank of India, Bank of Baroda, IDBI Bank and Axis Bank dropped 1.1% to 6.8% on Wednesday. Go First owes financial creditors 65.21 billion rupees ($798 million), its bankruptcy filing showed.

The airline is owned by the Wadia Group, which also runs bread and biscuits maker Britannia Industries and textile firm Bombay Dyeing and Manufacturing Co, whose shares dropped up to 1.5% and 5%, respectively.

Bombay Burmah Trading, which is also owned by Wadia and has given loans to Go First in the form of inter-corporate deposits, slid 10%.

(Reporting by Chris Thomas in Bengaluru; Editing by Dhanya Ann Thoppil)