Co-founder Rakesh Gangwal to offload 3.3% stake in IndiGo via bulk deals

Co-founder Rakesh Gangwal will divest a 3.3 per cent stake in InterGlobe Aviation (IndiGo airline) via bulk deals on Monday. As per the term sheet, the floor price for the transaction has been set at Rs 2,925, nearly 6 per cent below the last closing price of Rs 3,105.7.

At the base price, Gangwal will be able to mop up Rs 3,730 crore ($450 million).

Morgan Stanley, Goldman Sachs and JP Morgan are the investment banks handling the share sale.

At present, the Gangwal family holds about 25.21 per cent stake in the company that operates the country’s largest airline, IndiGo.

The Gangwal family have pared their holding in the airline major on several occasions in the recent past. In August 2023, wife Shobha Gangwal had sold a 3 per cent stake in InterGlobe for about Rs 2,802 crore. In February 2023, they sold a 4 per cent stake for Rs 2,900 crore. Prior to that, in September 2022, they sold a 2.8 per cent stake for around Rs 2,000 crore.

On 18 February 2022, Gangwal had resigned from the board of directors of the company, stating that he will gradually reduce his equity stake over the next five years.

Gangwal and other co-promoter Rahul Bhatia had been locked in a dispute for almost 2.5 years until December 2021. Bhatia and his related entities currently own 37.75 per cent in InterGlobe Aviation.

First Published: Mar 07 2024 | 9:17 PM IST