IndiGo’s co-founder Rakesh Gangwal’s family might sell shares worth $450 million in InterGloble Aviation, CNBC-TV18 reported on Tuesday, citing anonymous sources InterGlobe is the parent company of IndiGo Airlines. The family might sell the shares through a block deal on Wednesday, the sources revealed.
Rakesh and Shobha Gangwal have decided to fix the offer floor price for the sale at Rs 2,400 per share, an almost 6 per cent discount from the current market price (CMP), the report noted. The Gangwal family possesses a stake of 29.72 per cent in InterGlobe, as of June 30, 2023 and this share will come down to 25.72 per cent if the deal goes through. The Gangwal family is being advised on the deal by Morgan Stanley, JP Morgan, and Goldman Sachs. The deal will have a lockup period of 150 days, the report further revealed.
A block deal is basically a single transaction between two parties in a separate trading window. The minimum value in a block deal is Rs 5 crore with a minimum volume of 5 lakh shares. These deals take place at the start of the trading hours.
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Earlier in September last year, the Gangwal family divested their stake of 2.74 per cent in the company for Rs 2,005 crore through open market transactions and this year in February, they again sold a 4 per cent share of their stake via a block deal for Rs 2,900 crore.
InterGlobe Aviation operates IndiGo Airlines and the low-budget airline has been founded by Rakesh Gangwal and Rahul Bhatia. In February last year, Gangwal resigned from the company’s board notifying that he will be reducing his stake in the company over the next five years.
IndiGo recently reported its first-quarter earnings for the current fiscal year with a record profit of Rs 3,090.7 crore. The company also reported an increase of about 29 per cent in it’s revenue worth about Rs 16,683 crore, it’s record-high quarterly revenue.