Rakesh Gangwal, co-founder of IndiGo Airlines, has sold a significant portion of his stake in the airline’s parent company InterGlobe Aviation through a block deal. Gangwal and the Chinkerpoo Family Trust sold 22.5 million shares at Rs 4,714.90 each, amounting to nearly $1.3 billion or Rs 9,549 crore.
The sale represents approximately 30% of Gangwal’s total stake in IndiGo.Prior to the transaction, Gangwal directly owned 5.89% of the company, while the Chinkerpoo Family Trust held 13.49%.
The share sale comes after IndiGo’s stock reached a record high of Rs 4,859.85 on Wednesday, having surged 92% over the past year. The block deal was priced at a premium to the floor price of Rs 4,593 per share, which was a 5.5% discount from the market price, said a Bloomberg report.
Gangwal had announced plans to gradually reduce his holdings after resigning from IndiGo’s board in February 2022. His wife, Shobha Gangwal, had already exited the airline completely in August 2023.
The sale marks the third-largest block equity transaction in India this year, after deals involving ITC Ltd. and Indus Towers Ltd.
IndiGo, India’s largest domestic carrier, has a market share of 62% as of July 2024, while closest rival Air India Ltd. holds 14%.