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IndiGo's Stock Drops 3% After 6.7% Stake Sale

11 Mar 2024 , 11:02 AM

In early trade, shares of InterGlobe Aviation, the company that runs IndiGo, fell 3% as a result of a block deal involving the transfer of 2.6 Crore shares, or 6.7% of India’s largest airline. The agreement has a ₹7,823-Crore value.

On March 7, it was revealed that co-founder Rakesh Gangwal intended to generate approximately ₹3,723 Crore by selling a 3.3% stake in the business.

Gangwal was reportedly thinking about selling a 5.8% interest, according to a later CNBC-TV18 story.

The sources state that Gangwal received transaction advice from investment banks Morgan Stanley, JP Morgan, and Goldman Sachs.

Based on stock exchange information, InterGlobe Aviation is owned by Gangwal and his family trust to the tune of about 25%. In February 2022, the co-founder announced his resignation and aims to gradually reduce his family’s ownership stake.

The Gangwal family sold a 4% interest for ₹2,900 Crore in February and then again in September for ₹2,000 Crore. The family sold a $450 million stake in the sale, the largest block deal to date, in August of last year.

The airline reported a 111% increase in net profit for the December quarter, driven by the ongoing demand for air travel as well as the implementation of a fuel fee in October. Compared to the ₹1,422.6 Crore recorded during the same period last year, net profit was ₹2,998.12 Crore. Its operational income rose by 30% to ₹19,452.15 Crore.

The stock recovered its losses and was up 0.84% from the previous close to trade at ₹3,131.85 on the National Stock Exchange at 9:58 a.m.

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Related Tags

  • Indigo
  • interglobe aviation
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