IndiGo block deal: Gangwal Group to offload 3.1% InterGlobe stake for Rs 7,027 crore

IndiGo co-founder Rakesh Gangwal and the Chinkerpoo Family Trust are set to sell a 3.1% stake in InterGlobe Aviation Ltd via a block deal worth approximately Rs 7,027 crore, as per reports. The shares are being offered at a floor price of Rs 5,808 each, representing a roughly 4% discount to the company’s closing price of Rs 6,044.75 on Tuesday. The sellers have also agreed to a 150-day lock-up period on any subsequent share sales.

Gangwal and the promoter entity had previously sold up to a 3.4% stake in May. Since stepping down from InterGlobe’s board in February 2022, Gangwal has gradually reduced his holdings as part of a five-year plan to exit the company, following a governance dispute with co-founder Rahul Bhatia. Goldman Sachs, JPMorgan, and Morgan Stanley are the multinational investment banks handling the InterGlobe Aviation block deal.

Since 2022, Gangwal and his family have raised over Rs 45,300 crore through various stake sales. These include a 2.74% stake sold for Rs 2,005 crore in September 2022, a 4% stake sold by his wife Shobha for Rs 2,944 crore in February 2023, and nearly a 2.9% stake sold for just over Rs 2,800 crore in August 2023. In August 2024, the family trust sold a 5.2% stake for Rs 9,549 crore.

Following the latest transaction, the Gangwal Group will retain a 4.78% stake in the airline, valued at around Rs 11,169 crore.

Q1 results

InterGlobe Aviation reported a net profit of Rs 2,161 crore for the quarter ended June 2025, down 21% from Rs 2,727 crore in the same period last year. Revenue from operations for IndiGo, India’s largest airline, grew 5% to Rs 20,496 crore, compared with Rs 19,571 crore in the year-ago quarter.

The decline in net profit was primarily driven by a 26.5% increase in airport fees and charges, which rose to Rs 1,626.9 crore in Q1FY26 from Rs 1,286.1 crore a year earlier. The rise in these costs was linked to the closure of Pakistani airspace and disruptions in domestic traffic following India-Pakistan military tensions in April, as well as the terrorist attack on tourists at Pahalgam, Kashmir, on April 22.

Pakistan’s Islamabad authorities banned Indian carrier flights from using its airspace starting April 24, and the ban has been extended through August 24, 2025, in response to India’s measures following the attack, which left at least 26 dead. The drop in net profit was partially offset by lower aviation turbine fuel costs, which fell to Rs 5,832.6 crore in Q1FY26 from Rs 6,416.5 crore a year ago.