In a significant financial move, Rakesh Gangwal, co-founder of InterGlobe Aviation—the parent company of IndiGo Airlines—has sold a 5.8% stake in the company through a block deal valued at approximately ₹11,928 crore.
Transaction Details
- Shares Sold: Approximately 2.26 crore equity shares
- Stake Percentage: 5.8% of InterGlobe Aviation
- Sale Value: ₹11,928 crore
- Floor Price: ₹5,260 per share, representing a ~3% discount to the previous closing price
- Managing Banks: Goldman Sachs, Morgan Stanley, and JPMorgan facilitated the transaction
Market Reaction
Following the announcement, IndiGo’s stock experienced a dip of nearly 3% in early trading but later recovered some losses, trading at ₹5,318.00 per share, down 1.88% around 11 am.
Company Performance
Despite the stake sale, IndiGo reported strong financial results for Q4 FY25:
- Net Profit: ₹3,067.5 crore, a 61.89% increase year-on-year
- Revenue: ₹22,151.9 crore, up 24.3% from the previous year
- EBITDAR: ₹6,948.2 crore, a 57.5% rise
- Passenger Growth: 19.6% increase, reaching 3.19 crore travelers
Strategic Implications
This sale marks another step in Gangwal’s phased exit from IndiGo, which he co-founded in 2006. The Gangwal family’s stake has decreased from approximately 37% to 13.5% over the past three years.
The transaction underscores a significant shift in IndiGo’s ownership structure and may influence future strategic decisions within the company.