IndiGo co-founder Rakesh Gangwal to sell up to $850m in shares

Gangwal, the co-founder of IndiGo, has stated that he plans to slowly bob his holding in the airline after stepping down from the board in 2022.

Rakesh Gangwal, co-founder and promoter of IndiGo, is reportedly planning to sell up to $850 million worth of shares in InterGlobe Aviation, the parent company of the airline.

According to a report by CNBC-TV18 on August 28, the sale will be executed via block deals at a discounted indicative price of ₹4,593 per share.

Significant Stake Sale

Gangwal currently holds a 5.89 percent stake in IndiGo as of June 2024. His wife, Shobha Gangwal, along with the JPMorgan Trust of Delaware, holds an additional 13.49 percent, bringing their combined ownership in the company to 19.38 percent.

This planned sale represents a substantial portion of their holdings in the airline, indicating a significant move by the Gangwal family.

InterGlobe Aviation’s Strong Performance

InterGlobe Aviation’s shares have performed exceptionally well this year, rising by over 63 percent. This increase in stock value highlights the strong market performance and investor confidence in IndiGo, which is one of India’s leading airlines.

Market Impact

The decision to sell such a large stake could have notable implications for the market, especially given the scale of the block deals.

Investors and analysts will be closely watching how this sale might affect IndiGo’s stock price and overall market sentiment in the aviation sector.

Gangwal’s sale of shares marks a significant moment for InterGlobe Aviation, as it could signal changes in the ownership structure and potentially impact the future direction of the airline.