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The billionaire co-founder of IndiGo, Rakesh Gangwal, sold nearly $1.3 billion worth of shares in the airline’s operator InterGlobe Aviation Ltd. a day after they closed at a record high. 

Shares in India’s leading airline climbed 92 per cent over the past year and closed at a record high of 4,859.85 rupees ($57.94) Wednesday. Gangwal and the Chinkerpoo Family Trust sold 22.5 million shares at 4,714.90 rupees each in a block equity sale, according to a filing, representing 30 per cent of his IndiGo stake. 

The number of shares offered was raised from 14.7 million, and priced at a premium to the floor price. IndiGo’s shares fell as much as 3 per cent Thursday — the most since Aug. 5. 

Gangwal, 71, sold a similar number of shares in March for $820 million. 

Gangwal has a fortune of $6.9 billion after adding $1.8 billion this year, according to the Bloomberg Billionaires Index, with one-third of that move coming in the past 10 days alone. 

Thursday’s deal is the third-largest block equity sale in the country this year after ITC Ltd. and Indus Towers Ltd. As Indian equity benchmarks reach new highs promoters are choosing to take some profits from legacy investments.

A graduate of the India Institute of Technology Kanpur and the Wharton School at the University of Pennsylvania, Gangwal announced his resignation from the board of InterGlobe Aviation in February 2022, saying he would gradually reduce his stake in the company over the next five years.

“While new investors should benefit from the potential future growth in the company’s share price, a gradual reduction of my stake should also allow me to benefit from some of the upside. Like any plan, future events may impact my current thinking,” he said.

IndiGo is the largest airline in India with a domestic market share of 62 per cent in July, while closest rival Air India Ltd. had 14 per cent, according to government data. Its $22 billion market value puts it among the world’s biggest airlines, including Delta Air Lines Inc and Ryanair Holdings Plc.

Earlier this month, it introduced business class offerings to tap India’s burgeoning wealth, looking to bolster its services against Air India and Vistara, which are undergoing a merger.

“IndiGo remains in the driver’s seat, with new avenues of growth,” analysts Prateek Kumar and Raghav Malik at Jefferies wrote in a note last week.

Gangwal co-founded IndiGo Airlines in 2006 with Rahul Bhatia.

Before the latest sale, Gangwal owned 19 per cent of the airline directly and through a trust, according to filings.
Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. were the placement agents.

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India’s Adani Enterprises plans to raise up to ₹8 billion rupees ($95.3 million), through its debut public issue of bonds, the company said on Wednesday.

The issue, which has a base size and greenshoe option of 4 billion rupees each, will open for subscription on September 4 and will close on September 17, the company said in an exchange filing.

The company will sell bonds of multiple maturities including two years, three years and five years. However, it did not disclose what the funds would be used for.

It will pay an annual coupon of 9.25 per cent, 9.65 per cent and 9.90 per cent on two-year, three-year and five-year bonds respectively.

In addition, bondholders will have an option of direct coupon payment at maturity, making the effective yield for the two-year, three-year and five-year bonds the same as the annual coupons.

For the three-year and five-year bonds, it will have an option of a quarterly interest payment, and the coupon for these papers is 9.32 per cent and 9.56 per cent.

Trust Investment Advisors, AK Capital Services and Nuvama Wealth Management are the lead arrangers for the issue, which is rated A+ by CareEdge.

In July, Reuters had reported that the company would launch its maiden retail bond issue in coming weeks.

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Will Reliance Industries Ltd (RIL) finally announce the roadmap for Reliance Jio Infocomm (Rjio) listing at its 47th Annual General Meeting (AGM), following an industry-wide round of tariff hikes? Will there be a timeline for Reliance Retail Ventures Ltd unlocking too? Will there be some cues on strategic stake sale in oil-to-chemicals (O2C) business? How much have been invested in the new energy business — the next growth avenue where the oil-to-telecom major is infusing Rs 75,000 crore; and how soon will it start delivering earnings? Whether investors will see 5G monetisation and any further updates on the succession plan at India’s most-valued firm? These are the five hot topics that 33.71 lakh retail investors at RIL would seek clarity tomorrow, August 29.

Ahead of its AGM, RIL shares were trading flat at Rs 3,001 on Wednesday. The stock is up 16 per cent year-to-date against 13.41 per cent rise in the BSE Sensex and 40.77 per cent surge in the BSE oil & gas index during the same period.

In the case of retail, the RIL focus has been on operational efficiency as the capex intensity has been moderated and stores rationalised. In the case of O2C, earnings has been steady of late. “Timelines for commencement of new energy products and potential listings of Jio and Reliance Retail will be key things to focus on,” Bernstein said recently. The foreign brokerage suggested a revised target price of Rs 3,440 for RIL from Rs 3,190 earlier.

The RIL AGM 2023 had seen the formalisation of succession plan for RIL by Mukesh Ambani, the announcement regarding AiFiber and suggestions of potential investors in Reliance Retail.

JM Financial said that the timelines for listing of Retail and Digital businesses and any potential strategic stake sale in O2C business would be keenly watched. It is believed that the IPO plans for the telecom arm would be announced first. Jefferies recently valued Reliance Jio Infocomm at $112 billion.

“Any update on the progress of various projects underway in New Energy business with timelines around project commissioning and earning potential from such projects would be keenly followed,” JM Financial said.

RIL had in its 2022 AGM announced Rs 75,000 crore investments in New Energy. In its 2023 AGM, Mukesh Ambani said RIL was progressing well to deploy its committed capital to build New Energy manufacturing ecosystem.

“This will enable us to accelerate giga-scale production for round-the-clock power and for large-scale Green Hydrogen production for green chemicals manufacturing, as well as for green mobility,” he noted. Updates on New Energy biz, thus would be noteworthy.

The FY24 annual report suggested RIL will continue to monitor financial markets to seize suitable opportunities for capital-raising to support its growth plans

“New energy will be commissioning its first train of module and cell manufacturing in FY25. Solar panels manufactured in Jamnagar have obtained BIS certification. Parallelly, work on RE development has commenced and Reliance has been allotted land in Gujarat. The company aims to become the largest RE developer in India. It has initiated participation in RE PPA with the first PPA signed with MSEDCL for 128 MW for 25 years,” ICICI Securities said in a note.

The broking said investments in the new energy segment will start playing out gradually, with others segment having grown in capital employed by 3.9 times over FY19–24 to Rs 2.1 lakh crore.

“Any announcement of IPO plans for the telecom/retail business and further clarity on the New Energy segment are key upside risks to our call,” Elara Securities said last month.

On O2C business, BoB Capital Markets noted that RIL’s annual report largely talked about external market changes, which indicates that there is no focus on large O2C investments in the near term.

Meanwhile, investors would be keenly awaiting updates on 5G monetisation plans and any further update around succession plans.

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JSW Infrastructure (JSWIL) jumped 4.14% to Rs 322.05 after Fitch Ratings has affirmed the company’s long-term foreign-currency issuer default rating (IDR) at ‘BB+’ with ‘positive’ outlook.

Fitch Ratings stated that the ‘positive outlook reflects its expectation that JSWIL’s leverage (gross debt/EBITDA) will mostly remain below our upgrade sensitivity, despite the company’s increased investment plan.

The ‘positive outlook is also supported by the agencys expectation that JSWIL will maintain its third-party cargo mix at the current 40% level over the medium term.

The rating reflects JSWIL’s geographically diversified port locations, reasonable tariffs and long-term take-or-pay contracts, which account for about 30% of total revenue.

The rating is moderated by its cargo’s high exposure to two commodities, coal and iron ore, as well as customer concentration risk. JSW Steel contributes more than half of JSWIL’s cargo volume, but JSWIL’s credit assessment is not linked to that of JSW Steel.

JSW Infrastructure a part of JSW Group, is the second largest commercial port operator in India in terms of cargo handling capacity. It develops and operates ports and port terminals pursuant to port concessions.

On consolidated basis, the port operator has reported 8.87% fall in net profit to Rs 292.44 crore in Q1 FY25 as against Rs 320.89 crore recorded in Q1 FY24. Revenue from operations grew by 14.99% year on year (YoY) to Rs 1,009.77 crore in the quarter ended 30 June 2024.

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Shares of Zee Entertainment Enterprises Ltd. rallied up to 15% on Tuesday after the company informed that it has entered into an agreement to settle all disputes with Sony regarding the termination of the merger. Both Sony and Zee will withdraw all claims against each other.

Both the companies will withdraw the respective Composite Schemes of Arrangement from the NCLT and inform the relevant regulatory authorities, terminating the $10 billion deal.

Zee said that it will settle all disputes in relation to, arising out of or in connection with transaction with CMEPL and BEPL. The company said that CMEPL and BEPL have agreed to relinquish all their rights to bring any claim.

The agreement to withdraw all applications and claims before Singapore International Arbitration Centre, and both have agreed to mutually terminate all transaction documents.

“As part of the settlement, the companies (Zee and Sony Pictures India) have mutually agreed to withdraw all respective claims against each other, in the ongoing arbitration at the Singapore International Arbitration Centre, and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums,” Zee said in a filing.

The settlement also includes withdrawing all claims for the $90 million termination fee, damages, litigation and other costs incurred, and all claims for costs of disposition hive-off, spin-off, winding-up, liquidation, closure of business and or any other assets.

Zee Entertainment’s proposed $10 billion merger with Sony Pictures was called off in January this year after being in the works for over two years.

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