Gangwal family may sell 5-8% in IndiGo parent, InterGlobe Aviation: Report

The Gangwal family may reportedly sell 5-8 per cent of its stake in InterSlobe Aviation, parent of airline IndiGo, via a block deal. The deal is likely to be worth Rs 5,000-7,000 crore.

Brokers have held talks with certain funds for the deal, according to a report by CNBC that cited people in the know. 

Rakesh Gangwal and his wife, Shobha Gangwal, held 13.23 per cent and 2.99 per cent stake in InterGlobe as of March 31. Their Chinkerpoo Family Trust holds a 13.5 per cent stake. Shobha Gangwal had cut her stake in the company by over 4 per cent in February. 

In September last year, the Gangwals divested 2.74 per cent stake in InterGlobe for Rs 2,005 crore via open market transactions. The family’s lock-in period for the sale of further shares ends on July 15, which is when they are likely to sell the stake in block deals. 

Rakesh Gangwal resigned from the company's board in February 2022 and had said that he would cut his stake in the airline over five years.

IndiGo co-founders Rakesh Gangwal and Rahul Bhatia fell out in early 2020 when the former sought to modify certain rules in the company's articles of association. IndiGo was founded in 2006. 

Shares of the company, which are up over 19% year to date, fell as much as 3.1% after the stake sale report.

Also read: IndiGo offers connectivity to US via codeshare flights with Turkish Airlines

Also read: IndiGo's Amritsar-Ahmedabad flight enters Pakistan airspace amid bad weather