IndiGo’s co-founder and promoter Rakesh Gangwal is reportedly planning to sell an equity stake worth up to ₹10,300 crore in InterGlobe Aviation, the parent company of the airline. This move, reported by marks a significant increase from the previously reported ₹6,750 crore stake sale on August 28.
According to estimates, a sale of ₹10,300 crore could result in the Gangwal family offloading about 5.5% of their stake. The block deals are expected to be executed at an indicative price of ₹4,593 per share, representing a 5.5% discount to the previous closing price.
As of June 2024, Rakesh Gangwal holds 5.89% of IndiGo, while his wife, Shobha Gangwal, and JPMorgan Trust of Delaware control 13.49%, bringing the family’s total holding to 19.38%. This stake sale aligns with the Gangwal family’s broader strategy to gradually reduce their stake in IndiGo. Rakesh Gangwal had stepped down from InterGlobe Aviation’s board of directors in February 2022, stating his intention to decrease his stake in the airline over the next five years.
IndiGo’s stock has surged by over 63% this year. Despite a slight decline in profit for the quarter ending in June 2024—₹2,736 crore compared to ₹3,090.6 crore a year ago—the airline exceeded market expectations, driven by a significant increase in domestic travel.
Jefferies has upgraded IndiGo’s stock to a “Buy” rating, raising the target price to ₹5,225 per share. The firm cited strong operating performance and resilient industry capacity as key factors contributing to IndiGo’s healthy yields and consistent outperformance in the last 12-18 months.
