Gangwal family likely to sell IndiGo stake worth Rs 3,730 cr via block deal

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Gangwal family, the promoters of Indigo Airlines, is likely to sell shares worth Rs 3,730 crore in a block deal on Wednesday, reported The Economic Times (ET).


The Gangwal family has listed 15.6 million shares at a floor price of Rs 2,400 per share, representing a 5.8 per cent reduction from Monday’s closing price.


The deal’s lenders are Morgan Stanley, JPMorgan, and Goldman Sachs.


According to BSE records, the Gangwal family owned 29.72 per cent of IndiGo Airlines, while promoters held a total of 67.77 per cent of the company by the end of June 2023. At the current market pricing, the total stake of the Gangwal family is valued at Rs 29,218 crore, whereas India’s largest airline has a market capitalisation of Rs 98,313 crore. The Gangwal family held 36.66 per cent in June 2022 and Rakesh Gangwal has been pruning his stake since then.


Rakesh Gangwal resigned from IndiGo’s board in February and said he would sell his stake over the next five years.


On the operational front, Indigo reported a profit of Rs 3,090 crore and revenue of Rs 17,160 crore in the fiscal first quarter, which was 80 per cent higher than consensus expectations, owing to higher-than-expected yields and revenue passenger kilometer (RPK).


It transported 26.2 million passengers in the June 2023 quarter, with an 88.6 per cent load factor. IndiGo had a fleet of 316 aircraft at the end of June 2023, with a net addition of 12 passenger aircraft during the quarter. 


Meanwhile, the company stated that capacity in terms of available seat miles (ASKs) is predicted to increase by roughly 25 per cent in the second quarter of fiscal year 2024 compared to the second quarter of fiscal year 2023.