Indigo shares drop in value due to reports of the Co-founder’s family selling stake

12 Jun 2023 , 03:15 PM

According to a report by CNBC Awaaz, citing sources, the family of Rakesh Gangwal, co-founder of IndiGo, is planning to sell a portion of their shares in InterGlobe Aviation Ltd, the parent company of the Indian airline. The sale is expected to be between 5% and 8% of the shares, amounting to up to Rs 7,500 crore ($909.58 million).

As of March 31, Rakesh Gangwal held a 13.23% stake in InterGlobe, while his wife Shobha Gangwal owned 2.99%. Additionally, their Chinkerpoo Family Trust held a 13.5% share in the company.

It is reported that the Gangwal family is likely to sell their stakes in block deals once the lock-in period for shares ends on July 15.

In February, Shobha Gangwal had already reduced her ownership in the company by over 4%.

Rakesh Gangwal resigned from the company’s board in February 2022 and committed to gradually decreasing his ownership of the airline over a five-year period.

The split between Rakesh Gangwal and Rahul Bhatia, co-founders of IndiGo, occurred in early 2020 due to disagreements over proposed changes to the company’s articles of association.

Following the disclosure of the stake sale report, the company’s shares, which had seen a year-to-date increase of over 19%, experienced a drop of up to 3.1%.

For feedback and suggestions, please contact us at [e-mail].