IndiGo Co-founder Rakesh Gangwal Sells $1.36 Billion Stake in Airline
Rakesh Gangwal, co-founder of Indian low-cost airline IndiGo, has sold a 5.7% stake in the company through a block deal worth approximately $1.36 billion, according to a term sheet seen by Reuters on Tuesday.
The sale involved around 22.1 million shares, which were sold at a price of ₹5,230.5 (about $61.35) per share. This price represented a discount of 3.5% compared to the company’s closing price on Monday. Initially, the block deal was expected to include up to 13.2 million shares valued at roughly $803 million, but the size was increased to meet investor demand.
Before the sale, Gangwal held about 13.5% of IndiGo’s shares. This transaction means he has reduced his stake considerably, offloading nearly half of his holdings.
The share sale was led by major investment banks Goldman Sachs, Morgan Stanley, and JPMorgan, who helped structure and execute the transaction.
IndiGo, officially known as InterGlobe Aviation Ltd, is India’s largest airline by market share and has consistently been one of the most profitable carriers in the region. The company’s strong brand, efficient operations, and cost leadership have helped it become a dominant player in the highly competitive Indian aviation market.
Gangwal, who co-founded IndiGo in 2006 alongside Rahul Bhatia, has played a significant role in shaping the airline’s strategy and growth over the years. His decision to sell such a large stake marks a notable moment in the company’s history and could signal a shift in the ownership structure.
The share price discount on the block deal is a common feature in large off-market transactions, as buyers typically expect a lower price due to the size and illiquidity of the sale. Despite the discount, the deal raised a substantial sum, reflecting continued investor confidence in IndiGo’s long-term prospects.
IndiGo did not immediately respond to requests for comment regarding the sale.
The Indian aviation industry is currently navigating challenges such as fluctuating fuel prices, regulatory changes, and evolving passenger demand post-pandemic. However, IndiGo’s strong financial position and expanding domestic and international network continue to provide a competitive edge.
Gangwal’s sale may also provide liquidity for personal or strategic reasons, but it does not necessarily indicate a change in the airline’s operational direction.
With this transaction, IndiGo’s shareholding pattern is expected to evolve, and the market will watch closely to see how the airline continues to perform under its established leadership team.
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