InterGlobe Aviation promoter Rakesh Gangwal and his family trust offloaded a 5.7 per cent stake in IndiGo, India’s largest airline, for approximately Rs 11,385 crore ($1.33 billion) through a block deal on Tuesday, according to a PTI report citing sources.
The transaction included stake sales by the Chinkerpoo Family Trust, whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware. The deal was facilitated by investment banks Goldman Sachs (India) Securities, Morgan Stanley India, and JP Morgan India, acting as placement agents, as per the report.
Prior to this sale, Gangwal and his family trust collectively held around 13.5 per cent in IndiGo.
According to the updated term sheet seen by PTI, around 2.2 crore equity shares were sold at a floor price of Rs 5,175 per share, representing a 4.5 per cent discount to Monday’s closing price of Rs 5,420. The sale size was increased from an initial plan of 1.32 crore shares (worth Rs 6,831 crore or $803 million).
The entire stake sale, conducted in multiple tranches on the BSE and NSE, is secondary in nature, meaning no new shares were issued by the company.
As part of the deal, a 150-day lock-up period applies to the sellers and their immediate relatives. However, they are permitted to transfer shares worth at least $300 million to a single investor or group of investors through a negotiated deal, subject to specific pricing and lock-up terms.
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Reduction In August 2024
This is the latest in a series of stake reductions by the Gangwal family. In August 2024, the Chinkerpoo Family Trust sold a 5.24 per cent stake for Rs 9,549 crore. Earlier, Gangwal had sold shares in March 2024.
The divestments follow Gangwal’s February 2022 announcement to gradually reduce his stake in IndiGo after a high-profile fallout with co-founder Rahul Bhatia over corporate governance concerns.
Since 2022, Rakesh Gangwal and his wife Shobha Gangwal have been steadily reducing their stake in IndiGo. In September 2022, they sold a 2.74 per cent stake for Rs 2,005 crore. This was followed by Shobha Gangwal offloading a 4 per cent stake in February 2023 for Rs 2,944 crore. In August 2023, she further divested nearly 2.9 per cent of the company, raising a little over Rs 2,800 crore.
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