IndiGo co-founder Rakesh Gangwal to sell his shares worth $1.4 billion: Report

This is Rakesh Gangwal's third share sale in IndiGo since March 2024. Before this deal, he had sold shares worth $2 billion through block trades.

Updated on: May 27, 2025, 10:50:00 IST

By HT News Desk

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Rakesh Gangwal, co-founder of budget airline IndiGo, will sell up to a 5.7% stake in the company through a block deal valued at around $1.4 billion, according to a term sheet reviewed on Tuesday, reported Reuters.

Rakesh Gangwal and his family trust currently own a total of around 13.5% of IndiGo shares, reported Bloomberg. (File/HT)

In the deal, the sale will have a floor price of ₹5,175 ($60.84) per share, according to the term sheet. This means that there would be a 4.5% discount from IndiGo’s closing price of ₹5,420 on Monday, the document revealed.

As many as 22 million shares of the IndiGo airline will be sold, which is an increase from the initially planned 13.2 million shares, estimated to be worth around $803 million, the report added.

Among those leading the share sale are Goldman Sachs, Morgan Stanley and JPMorgan.

IndiGo has not responded to the development yet after Reuters reached out for a comment.

How many shares does Rakesh Gangwal own in IndiGo?

Currently, Gangwal and his family trust, The Chinkerpoo Family Trust, own a total of around 13.5% of IndiGo shares, reported Bloomberg. While Gangwal owns 5.3% of the shares, his family trust owns the remaining 8.23%, the report said.

This is not the first time Gangwal chopped off his ownership in IndiGo Airlines. This deal would be his third share sale in just a little over a year since March 2024, Bloomberg reported. Before this, Gangwal had sold his shares worth $2 billion through block trades.

This deal comes just a week following the airline’s larger-than-expected quarterly profit which was fuelled by high travel demand during the six-week long Kumbh Mela earlier this year.

71-year-old entrepreneur Rakesh Gangwal co-founded IndiGo around two decades back in 2006 with Rahul Bhatia, who is the current Managing Director of the airline. Indigo’s fleet is 434 aircrafts strong and the firm held a 64.3% share of the Indian market as of March 31.

With inputs from Bloomberg, Reuters

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HT News Desk
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