Rakesh Gangwal, co-founder of IndiGo, India’s biggest airline, is seeking to raise up to $795 million from selling his stock. This would mark the largest block sale in the country since 2019 as Rakesh Gangwal is offering as many as 22.5 million shares of InterGlobe Aviation Ltd., owner of Indigo, at a floor price of 2,925 rupees each, it was reported.
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Shares of InterGlobe Aviation declined 3 per cent in early trade today (March 11) after a 6.7 percent stake changed hands in the block deal valued ₹7,823 crore.
What we know about the block sale?
The number of shares on sale was increased from the 12.75 million initially expected, Bloomberg reported. Through the block deal, Rakesh Gangwal will cashing in with the stock trading near a record high.
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Morgan Stanley, JP Morgan, and Goldman Sachs were the investment banks advising Rakesh Gangwal and he and his family trust collectively own around 25 percent of InterGlobe Aviation, data showed.
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Who is Rakesh Gangwal?
Rakesh Gangwal stepped down in February 2022 and announced plans to dilute his family’s stake. In February, he sold a 4 per cent stake for ₹2,900 crore and again sold a 2.8 per cent stake worth ₹2,000 crore in September. In August his family divested a stake worth $450 million.
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IndiGo airline performance
{{/usCountry}}Rakesh Gangwal stepped down in February 2022 and announced plans to dilute his family’s stake. In February, he sold a 4 per cent stake for ₹2,900 crore and again sold a 2.8 per cent stake worth ₹2,000 crore in September. In August his family divested a stake worth $450 million.
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IndiGo airline performance
{{/usCountry}}In the December quarter, IndiGo reported a 111 per cent jump in net profit as it came in at ₹2,998.12 crore against ₹1,422.6 crore reported during the same period last year. The airline's revenue from operations increased 30 per cent to ₹19,452.15 crore.