The promoters of IndiGo, particularly the family of co-founder Rakesh Gangwal, are set to sell a 2% stake in the airline through a block deal valued at approximately ₹3,700 crore (about $450 million).
This transaction is part of a strategic move by the Gangwal family to gradually reduce their ownership in IndiGo, formally known as InterGlobe Aviation Ltd.
The block deal involves around 15.6 million shares, offered at a floor price of ₹2,400 per share, which is a 5.8% discount from the last closing price of ₹2,549 per share.
This sale will decrease the Gangwal family's stake in the company from 29.72% to approximately 25.72%.
Investment banks Morgan Stanley, JPMorgan, and Goldman Sachs are managing the transaction.
In the past year, the Gangwal family has executed several similar sales.
In September 2022, they sold a 2.8% stake for about ₹2,000 crore, and in February 2023, they sold a 4% stake for ₹2,900 crore.
These sales are part of Rakesh Gangwal's plan, announced after he resigned from the board in February 2022, to gradually reduce his stake in the company over five years.
IndiGo, India's largest airline, has demonstrated strong financial performance, reporting a record quarterly profit of ₹3,090.6 crore for the first quarter of the fiscal year 2023-24.
The company’s shares have also shown significant growth, rising by 33% in the financial year to date
