Report: Rakesh Gangwal sells IndiGo shares worth $804 million through block deal

InterGlobe Aviation co-founder Rakesh Gangwal is looking to sell up to $804 million of the company in a package deal, ET Now reported. The floor price for the deal could be Rs 4,593 per share, a 5.5% discount to the current market price. Gangwal, the co-founder of India’s largest airline, had said he would gradually reduce his holdings in the company after he retires from the board in February 2022. Shobha Gangwal has exited the airline completely.

Rakesh Gangwal, his wife Shobha Gangwal and their family trust, all part of the founder group, owned nearly 34 percent of the airline’s shares at the end of December last year.

Earlier this year, Gangwal had sold his 5.8 percent stake in the low-cost airline on the open market for Rs 6,786 million.

As of June 2024, Rakesh Gangwal held a 5.89% stake in India’s largest airline under IndiGo, and his family trust – The Chinkerpoo Family Trust – holds a 13.49% stake.

In August 2023, Shobha Gangwal sold a 4 percent stake in the company in the open market for around Rs 2,944 crore.

Gangwal is likely to cash in on the stock price near record highs as a fast-growing retail investor base and strong corporate earnings drive demand for Indian equities.

In two years, the co-founder has attracted investors through a block sale of IndiGo shares more than five times. In the last year, IndiGo shares have risen by about 95%.

On Wednesday, the stock closed 2.4% higher at Rs 4,863 on the NSE.

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