IndiGo Stake Sale: India’s largest airline, IndiGo, saw its promoter Rakesh Gangwal and his family trust sell a 5.7% stake for approximately ₹11,559 crore (US$1.36 billion). The transaction in the parent company, InterGlobe Aviation, took place on Tuesday through a block deal. Following the sale, InterGlobe Aviation shares declined, with the stock trading down 2.20% at ₹5,301 during the afternoon session on the NSE.
Rakesh Gangwal and Family Trust Sell Shares
According to sources cited by news agency PTI, the stake sale involved not only Rakesh Gangwal but also his trust, the Chinkerpoo Family Trust. Trustees of the trust include Shobha Gangwal and JP Morgan Trust Company of Delaware. Goldman Sachs (India) Securities Pvt. Ltd., Morgan Stanley India, and JP Morgan India were appointed as placement agents for the sale.
Deal Priced at ₹5,230.50 Per Share
A total of 22.1 million equity shares were sold under the block deal at a price of ₹5,230.50 per share. This price represents roughly a 3.5% discount compared to Monday’s closing price of ₹5,420 per share. Initially, the term sheet had planned for the sale of just 13.2 million shares, but the number was later increased.
Stake Was 13.5% Before the Deal
Sources say that the 22.1 million shares represent about 5.7% of the company’s total stake. The total value of this stake is estimated at around ₹11,559 crore or US$1.36 billion. Before this transaction, Rakesh Gangwal and his trust held approximately 13.5% in IndiGo. The shares were sold in multiple steps entirely through the secondary market on both BSE and NSE.
150-Day Lock-Up Imposed on Vendors and Close Relatives
A key condition of the deal is a 150-day lock-up period for the vendors and their close relatives. However, an exception allows them to sell shares worth at least US$300 million to a single investor or investor group under certain conditions. It’s worth noting that in August 2024, Gangwal’s family trust had sold a 5.24% stake in IndiGo for ₹9,549 crore. They had also sold shares earlier in March 2024.
Gangwal Family Has Been Reducing Stake Since February 2022
This share sale is part of Rakesh Gangwal’s February 2022 decision to gradually reduce his stake in the company. He made this decision following a governance dispute with the company’s co-founder, Rahul Bhatia. Since February 2022, Rakesh Gangwal and his wife Shobha have been steadily lowering their holdings. In September 2022, they sold a combined 2.74% stake for ₹2,005 crore. In February 2023, Shobha Gangwal sold a 4% stake for ₹2,944 crore, and in August 2023, she sold about 2.9% for over ₹2,800 crore.
Disclaimer: This article is just for information. It should not be treated as investment advice in any way. Investing in the stock market is based on risk. Be sure to consult your financial advisor before investing in the stock market.
