IndiGo shares tank on report promoter Gangwal family plans 5-8% stake sale
InterGlobe Aviation: Rakesh Gangwal held 5,10,21,132 shares, or 13.23 per cent stake, in IndiGo as of March 31. Shobha Gangwal also held 1,15,23,361 shares or 2.99 per cent stake.
- Jun 12, 2023,
- Updated Jun 12, 2023 12:47 PM IST
Shares of InterGlobe Aviation (IndiGo) tanked over 3 per cent in Monday's trade amid a media report suggesting the Gangwal family was looking to offload 5-8 per cent stake in the aviation company via block deal. As per a CNBC port quoting sources brokers have held talks with certain funds for the deal, which is likely to be worth Rs 5,000-7,000 crore.
Following the development, the stock fell 3.38 per cent to hit a low of Rs 2,378.55 on BSE.
The report noted that Rakesh Gangwal had resigned from the company's board of directors in February last year and had suggesting that he would gradually reduce his stake in the aviation firm over the next five years. As per BSE data, Rakesh Gangwal held 5,10,21,132 shares, or 13.23 per cent stake, in IndiGo as of March 31. Shobha Gangwal held 1,15,23,361 shares or 2.99 per cent stake. Meanwhile, The Chinkerpoo Family Trust (Trustee: Shobha Gangwal & J.P. Morgan Trust Company of Delaware) owned 5,20,50,413 per cent or 13.50 per cent stake in the company. Overall, promoters as a group owned 67.86 per cent stake in the airline at the end of March quarter.
There were, meanwhile, reports that the largest carrier was trying to buy a majority stake in the embattled airline Go First, controlled by the Wadia Group.
It has been reported that IndiGo will be merging its operations with the debt-ridden carrier, which had sought initiation of voluntary insolvency proceedings and imposition of an interim moratorium under the Insolvency and Bankruptcy Code (IBC) last month.
InterGlobe Aviation said it cannot comment on rumours.
"IndiGo is aware about certain media reports stating that IndiGo has expressed an interest in Go First. IndiGo does not comment on market speculation and remains focussed on its growth strategy," an IndiGo official told CNBC TV18 on Thursday.
Also read: ABB India shares at Rs 5,000? UBS upgrades stock to 'Buy'. Here's why
Shares of InterGlobe Aviation (IndiGo) tanked over 3 per cent in Monday's trade amid a media report suggesting the Gangwal family was looking to offload 5-8 per cent stake in the aviation company via block deal. As per a CNBC port quoting sources brokers have held talks with certain funds for the deal, which is likely to be worth Rs 5,000-7,000 crore.
Following the development, the stock fell 3.38 per cent to hit a low of Rs 2,378.55 on BSE.
The report noted that Rakesh Gangwal had resigned from the company's board of directors in February last year and had suggesting that he would gradually reduce his stake in the aviation firm over the next five years. As per BSE data, Rakesh Gangwal held 5,10,21,132 shares, or 13.23 per cent stake, in IndiGo as of March 31. Shobha Gangwal held 1,15,23,361 shares or 2.99 per cent stake. Meanwhile, The Chinkerpoo Family Trust (Trustee: Shobha Gangwal & J.P. Morgan Trust Company of Delaware) owned 5,20,50,413 per cent or 13.50 per cent stake in the company. Overall, promoters as a group owned 67.86 per cent stake in the airline at the end of March quarter.
There were, meanwhile, reports that the largest carrier was trying to buy a majority stake in the embattled airline Go First, controlled by the Wadia Group.
It has been reported that IndiGo will be merging its operations with the debt-ridden carrier, which had sought initiation of voluntary insolvency proceedings and imposition of an interim moratorium under the Insolvency and Bankruptcy Code (IBC) last month.
InterGlobe Aviation said it cannot comment on rumours.
"IndiGo is aware about certain media reports stating that IndiGo has expressed an interest in Go First. IndiGo does not comment on market speculation and remains focussed on its growth strategy," an IndiGo official told CNBC TV18 on Thursday.
Also read: ABB India shares at Rs 5,000? UBS upgrades stock to 'Buy'. Here's why