Gangwal family to reduce stake in IndiGo via $450 million block deal; stock tanks over 3%

16 Aug 2023 , 10:59 AM

A massive block deal is in the works at Interglobe Aviation Limited (IndiGo), as the Gangwal family, led by Rakesh Gangwal, seeks to fetch $450 million, or around Rs 3,735 crore, through the largest block sale amidst ongoing stake reduction operation by co-founder.

In September 2022, the family sold a 2.8% stake for Rs 2,000 crore, and in February, it sold a 4% stake for Rs 2,900 crore. As per the company’s filing with the bourses, Rakesh Gangwal vacated his position on the board of Interglobe Aviation in February 2022, and the family owns a 29.72% stake in the company. When he resigned from the board, Gangwal stated that the family’s interest will be reduced gradually.

According to the company, the offer floor price is fixed at Rs 2,400 per share, reflecting a 5.8% discount on its previous closing price of Rs 2,549 per share.

The current market capitalization of Interglobe Aviation stands at around Rs 98,313 crore. In the last six months the stock price has jumped by more than 22%.

At around 10.44 AM, Interglobe Aviation was trading 3.34% lower at Rs 2,463.90 per piece, against the previous close of Rs 2,549.10 on NSE.

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