Indigo Shares Drop 1.8% on Block Deal

29 Aug 2024 , 12:19 PM

IndiGo Airlines’ parent company, InterGlobe Aviation, saw a 3% decline in its shares on Thursday, hitting a day’s low of Rs 4,714.90. This was due to reports that co-founder Rakesh Gangwal had sold 2.3 crore shares in a big block deal valued at over Rs 11,000 crore.

Gangwal may have finished his departure from IndiGo, the airline he co-founded with Rahul Bhatia in 2006, given that the billionaire controlled roughly 5.89% of the company at the end of the June quarter.

A share was traded for an average of Rs 4,760 in today’s block deal. It is yet unknown who the transaction’s official sellers are.

According to earlier reports, Gangwal wanted to sell a stake for Rs 6,750 crore, but this figure has since been raised to Rs 11,000 crore.

Gangwal, who co-founded the biggest carrier in India, had said he planned to progressively sell his shares after leaving the board in February 2022. Since then, Shobha Gangwal has left the company entirely.

Rakesh Gangwal owned about 6% of the company’s shares as of the quarter that ended in June 2024, while his family trust, The Chinkerpoo Family Trust, owned 13.49%.

Shobha Gangwal sold a 4% share in the company for around Rs 2,944 crore on the open market in August 2023.

Gangwal is probably making the most of the stock’s almost all-time highs, which are being fueled by the demand for Indian stocks being increased by a steadily expanding retail investor base and solid corporate earnings.

The co-founder has raised money more than five times in the last two years through block sales of IndiGo shares. IndiGo shares have increased by around 95% in the past year.

The stock has risen 63.30% so far this calendar year, and the shares have almost doubled in the last year.

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