IndiGo Shares Under Spotlight As Promoters Plan Stake Sale; Stock Slips In Early Trade

IndiGo Share price: The shares are expected to be sold at an indicative price of Rs 4,593 per share, which represents a discount to the current market price

Shares of InterGlobe Aviation Ltd, the parent firm of IndiGo, are drawing attention in Thursday's trading session following reports that promoters Rakesh Gangwal and Chinkerpoo Family Trust are set to offload up to 1.47 crore shares of the airline through block deals today.

At 9.40 am, shares of IndiGo slipped 1.12 per cent to Rs 4804.95 apiece on the BSE on Thursday. On the NSE, the stocks were trading at Rs 4,804.90 per share, down 1.13 per cent.

According to sources familiar with the deal, the transaction could be valued at approximately $850 million, or around Rs 6,750 crore. The shares are expected to be sold at an indicative price of Rs 4,593 per share, which represents a discount to the current market price.

Rakesh Gangwal, co-founder of IndiGo, announced his intention to gradually reduce his stake in the airline after resigning from the board in February 2022. Over the past two years, Gangwal and his related entities have been systematically selling their stake in phases. Notably, Shobha Gangwal has already divested her entire holding in the company.

In March of this year, Gangwal sold a significant portion of his stake in InterGlobe Aviation Ltd., netting Rs 6,785 crore through open market transactions. As of the end of June, Gangwal and his family trust held nearly 19.38 per cent of the airline's shares, down from the 36.61 per cent stake they once controlled before Gangwal's resignation.

This ongoing divestment comes against the backdrop of a long-standing dispute between Gangwal and Co-Founder and Managing Director Rahul Bhatia over proposed amendments to the company's articles of association. Bhatia and his family currently hold approximately 37.8 per cent of the company's shares.

Rakesh Gangwal, an aviation industry veteran with extensive experience in senior roles at United Airlines and US Airways, has focused on the strategic direction of IndiGo, while Bhatia oversees operations in India.

On Wednesday, shares of InterGlobe Aviation closed 2.4 per cent higher at Rs 4,859.20, outperforming the BSE Sensex, which gained 0.09 per cent.