IndiGo stake sale on the horizon as Gangwal explores options

6 Feb 2024 , 10:12 AM

IndiGo promoter Rakesh Gangwal is likely to offload another tranche of shares in the low-cost carrier soon, CNBC-TV18 reported on February 5 citing sources. Roadshows are also likely underway to gauge investor interest for the stake sale.

The lock-in period for the Gangwals before they can further pare stake in the company ends on February 13. The promoter family has already sold a total of over 12% equity in the company in three tranches. As of December end, the Gangwals held a 25.2% stake in IndiGo operator InterGlobe Aviation.

The Gangwal family intends to gradually decrease their ownership of IndiGo, and this includes the sale of a stake. In February 2022, Rakesh Gangwal announced his resignation from the InterGlobe Aviation board of directors, announcing that he would be reducing his ownership in the low-cost airline over the following five years.

In the meantime, the business released a strong set of Q3 results. The company’s net profit increased to ₹2,998 crore from the same period last year, more than double due to the ongoing demand for air travel and the October introduction of a fuel surcharge that countered some aircraft groundings.

In addition to receiving a favourable reaction from analysts and investors, the outstanding quarterly performance propelled the stock to a new high of ₹3,300 earlier in the trading session.

In reaction to IndiGo’s impressive quarterly performance, numerous brokers raised their price estimates for the stock, demonstrating their continued optimism in the company’s growth possibilities.

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