IndiGo co-founder Rakesh Gangwal and his family sold 5.1 per cent equity stake in the company through a block deal for Rs 4,837 crore
Shares of InterGlobe Aviation, also known as IndiGo, plunged over 4 per cent in early trading on Wednesday amid reports that a block deal involving 5.1 per cent equity stake in the company took place on the exchanges. Around two crore shares or a 5.1 per cent stake in the company changed hands through a deal worth Rs 4,837 crore, reported Moneycontrol.
On Tuesday, the Economic Times reported that co-founder Rakesh Gangwal and his family are likely to sell shares worth Rs 3,730 crore ($45 million) through block deal. Gangwal family has offered around 15.6 million shares on the block, or around 4 per cent stake in the airline, at a floor price of Rs 2,400 per share, as per report. The floor price is at around 5 per cent discount from the closing price of Rs 2,549 per share on Monday.
Morgan Stanley, JP Morgan, and Goldman Sachs are the bankers for the block deal.
At 10:00 AM, the stock was trading 3.74 per cent down at Rs 2,453.50 on the NSE.
In September 2022, Gangwal family sold a 2.8 per cent stake in the airline for Rs 2,000 crore. In February this year, they sold another 4 per cent stake for Rs 2,900 crore.
Rakesh Gangwal stepped down from the board of InterGlobe Aviation Limited in February 2022. As of June 2023, the family owns 29.72 per cent stake in the country’s largest domestic airlines, with the overall promoter stake at 67.77 per cent. Upon resigning from the board, Gangwal said that the family aims to gradually reduce its ownership stake.
In April-June 2023 quarter, IndiGo reported a record high net profit of Rs 3,090.60 crore compared to a loss of Rs 1,064.30 crore during the same period last year. The airline announced its total income for the quarter at Rs 17,160.90 crore, which is an all-time high. The company said that these results are indicative of robust operational performance, successful strategy execution, and favorable market conditions.