Gangwal family to sell 2.8% stake in Indigo

8 Sep 2022 , 10:37 AM

The family of IndiGo co-founder Rakesh Gangwal is attempting to sell a block transaction on a 2.8 % interest in InterGlobe Aviation, the holding firm that controls IndiGo airlines.

A block offer was announced for the sale by Morgan Stanley, one of the investment banks overseeing the sale of the Gangwal family’s share in InterGlobe. 10.8 million shares belonging to the Gangwal family have been put for sale for Rs19.96 billion as part of the block deal, the investment bank announced in a statement to the stock markets.

When compared to InterGloble Aviation’s National Stock Exchange closing price of Rs1,977.70 on September 7, the shares are listed at Rs1,850 per share, a reduction of 6.5 %. Rakesh Gangwal has requested the management of the proposed sale of his IndiGo shares from Citigroup, Goldman Sachs, Morgan Stanley, and JP Morgan.

Together, Gangwal, his wife Shobha, and their family trust own 36.6 % of InterGlobe Aviation, the company that owns IndiGo and has a market value of over Rs76,800 crore. It’s possible that their total shareholding is worth up to Rs28,097 crore.

Midway through February, Gangwal announced his resignation from the InterGlobe Aviation board and pledged to sell his stock over a five-year period. As of late last year, Gangwal was able to sell his ownership without co-founder Rahul Bhatia’s consent thanks to a revision in IndiGo’s articles of association that was accepted by the company’s shareholders.

For the previous many years, Gangwal and Bhatia had been embroiled in a protracted court dispute involving claims of abuse of authority and related-party activities. Formerly a hands-on promoter, Gangwal had declined to take part in important acquisition choices in 2018 and had since stood off from all operational matters until his resignation in February. That same month, Bhatia became managing director.

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