In a move that follows a series of stake sales, InterGlobe Enterprises, the promoter entity of IndiGo, is reportedly planning to sell approximately 4% of its stake in the airline through a block deal. According to a CNBC TV18 report, the company currently holds a 35.7% stake in the airline, and the latest transaction could raise around $1 billion.
This proposed share sale comes after Rakesh Gangwal, a co-founder and former board member of IndiGo, reduced his family’s stake in the airline by 5.7% earlier this year. Gangwal, who has been gradually offloading shares since 2022, sold a 5.24% stake in August 2024 for ₹9,549 crore, and previously offloaded more shares in March. His stake reduction follows a fallout with co-founder Rahul Bhatia over concerns about corporate governance, which led Gangwal to announce in February 2022 his decision to lower his stake over time.
The most recent sale, which occurred in May 2024, saw Gangwal and his family trust sell 5.7% of IndiGo for approximately ₹11,559 crore ($1.36 billion) via a block deal. Following these transactions, Gangwal’s remaining stake in the airline now stands at just 7.8%.
When contacted for comments on the upcoming stake sale, IndiGo declined to provide any response, stating, “We won’t comment on the query.”
As the news of the stake sale spread, shares of InterGlobe Aviation, the parent company of IndiGo, were down by 4.72% at ₹5,224.65 at 12:40 pm today.
What This Means for IndiGo and Stakeholders
InterGlobe Enterprises’ decision to sell additional shares in IndiGo aligns with Rakesh Gangwal’s ongoing strategy to reduce his family’s involvement in the airline, which has been a topic of discussion for several years. With Gangwal’s stake now significantly reduced, this could signal a shift in the power dynamics within the airline’s leadership, particularly concerning the co-founders’ differing views on governance.
The potential $1 billion raised from this latest share sale is expected to have a significant impact on the airline’s financial outlook, depending on the market’s reaction and the extent of any strategic changes. As IndiGo continues to be a dominant player in India’s aviation sector, stakeholders will be watching closely for any further developments.
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