Rakesh Gangwal pares 5.8% stake worth ₹6,786 Crore in InterGlobe Aviation

12 Mar 2024 , 09:06 AM

Rakesh Gangwal, InterGlobe Aviation’s co-founder, sold a 5.8% interest in the budget airline on Monday for ₹6,786 Crore in the open market.

Gangwal sold 2,25,00,000 shares at an average price of ₹3,016 per share, according to BSE bulk deal data.

In a second transaction, Morgan Stanley Asia Singapore Pte paid ₹633 Crore for 21,00,000 shares of the firm, representing a 0.5% ownership. On Monday, IndiGo parent shares closed 3.6% higher on the BSE at ₹3,214.25.

Rakesh Gangwal, his wife Shobha Gangwal, and their family trust, all members of the promoter group, owned approximately 34% of the airline in December 2022.

Gangwal, the co-founder of India’s largest carrier, stated that he will progressively lower his stake in the firm after leaving the board in February 2022. Shobha Gangwal has fully left the airline.

As of December 2023, Rakesh Gangwal owned 11.72% of India’s largest airline, IndiGo, while his family trust, The Chinkerpoo Family Trust, owned 13.5%.

Shobha Gangwal sold a 4% share in the firm in August 2023 for around ₹2,944 Crore on the open market. Since then, InterGlobe Aviation’s stock has risen approximately 22%.

Gangwal is cashing in on the stock’s near-record high, as a rapidly rising individual investor base and good corporate results fuel demand for Indian stocks. According to reports, this is the fourth time the co-founder has raised funds through a block sale of IndiGo shares in the last two years.

In the December quarter, IndiGo recorded a consolidated net profit of ₹2,998 Crore, up 111% from ₹1,423 Crore in the previous year’s quarter. During the reporting year, revenue from operations grew by 30% year on year to ₹19,452 Crore.

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