IndiGo co-founder Rakesh Gangwal’s family trust sells stake in airline worth ₹9,549 crore

Rakesh Gangwal's Chinkerpoo Family Trust sold a 5.24% stake in InterGlobe Aviation on Thursday, amounting to ₹9,549 crore through open market transactions. The trust divested over 2.02 crore shares of IndiGo, according to bulk deal data on the BSE.

The shares were sold in three separate transactions, with prices ranging from ₹4,714.95 to ₹4,715.89 per share, totaling a combined transaction value of ₹9,548.95 crore.

At the close of trading, the stock was priced 2.06 per cent below the Sensex, which ended in positive territory.

InterGlobe Aviation, the parent company of IndiGo, holds a domestic market share exceeding 60%.

Morgan Stanley Asia (Singapore) Pte acquired 28.54 lakh shares, representing a 0.74% stake in InterGlobe Aviation, at an average price of ₹4,714.90 per share. The total value of this transaction was ₹1,345.63 crore. Details on other buyers are not available.

As of the end of June, promoter and promoter group entities held a 55.29 per cent stake in InterGlobe Aviation. Rakesh Gangwal owned a 5.89 per cent stake, while the Chinkerpoo Family Trust, with trustees Shobha Gangwal and JP Morgan Trust Company of Delaware, held 13.49 per cent. Bhatia and InterGlobe Enterprises collectively owned 35.91 per cent of the company.

This marks the second instance of Gangwal selling shares of IndiGo this year, following a similar sale in March. Since February 2022, Gangwal and his wife, Shobha Gangwal, have been reducing their shareholding in IndiGo.

In August 2023, Shobha Gangwal sold nearly 2.9 per cent of the company for over ₹2,800 crore. In February 2023, she divested a 4 per cent stake for ₹2,944 crore, and in September 2022, both Rakesh and Shobha Gangwal sold a 2.74 per cent stake for ₹2,005 crore.

Due to disagreements with co-founder Rahul Bhatia, Gangwal resigned from the InterGlobe Aviation board in February 2022 and announced plans to gradually reduce his equity stake over the next five years.

Gangwal had announced his plans to gradually decrease his holdings following his resignation from IndiGo's board in February 2022. His wife, Shobha Gangwal, had already fully divested from the airline by August 2023.

The sale represents the third-largest block equity transaction in India this year, following transactions involving ITC Ltd. and Indus Towers Ltd.

As of July 2024, IndiGo, India's largest domestic airline, commands a market share of 62 per cent, while its nearest competitor, Air India Ltd., holds 14 per cent.

(With inputs from PTI)