MUMBAI: The founding promoters of InterGlobe Aviation, the parent firm of India’s largest airline IndiGo, is expected to sell shares worth $350 million (Rs 2,883.3 crore) via a block deal on Thursday, as per reports.
The promoters, reported to be co-founder Rakesh Gangwal and his wife Shobha Gangwal, will be offering 1.56 crore shares, or 4% of the total equity, at a floor price of Rs 1,875 a share. This is a 5.6% discount on the current share prices of IndiGo.
On Wednesday, share prices of IndiGo fell nearly 3% to close at Rs 1,976 on the NSE. The Gangwals, after ending a long dispute with co-founder Rahul Bhatia last year, sold a 2.75% stake in the airline in September 2022. This had fetched them about Rs 2,000 crore.
The first stake sale came seven months after Rakesh Gangwal resigned from the company’s board and announced that he would cut his stake in the airline over five years. Gangwal and Bhatia, who co-founded IndiGo in 2006, got involved in a public dispute in 2019 when the former blamed Bhatia and his related entities (holding about 38% share in IndiGo) for lack of governance and a clause in the company’s article of association that prevented the co-founders from buying publicly-listed shares in InterGlobe.
After Gangwal had tendered his resignation, Bhatia took over the role of managing director. As of December 2022, promoter and promoter group entities held about 72% stake in Interglobe Aviation, according to regulatory filings. The Gangwal side held a 33.78% stake in the airline company as of December 2022.
Earlier this month, Indigo reported a record Rs 1,422 crore net profit in the quarter ending December 2022, after three consecutive loss-making quarters. Most brokerages are bullish about the company’s share prices and see it reachingto the level of 1Rs 2,400-Rs 2,600.
Indigo reported record Rs 1,422 cr net profit in Q3
Earlier this month, Indigo reported a record Rs 1,422 crore net profit in the quarter ending December 2022, after three consecutive loss-making quarters. Most brokerages are bullish about the company’s share prices and see it reachingto the level of 1Rs 2,400-Rs 2,600