IndiGo block deal: InterGlobe Aviation shares fall, turnover hits Rs 13,800 crore

InterGlobe Aviation Ltd (IndiGo) saw its shares falling 3 per cent in Tuesday's trade amid heavy turnover, as the Gangwal family was reportedly looking to pare stake in India's largest airline. The stock fell 4.49 per cent to hit a low of Rs 5,230.50 on NSE, with the stock clocking a turnover of Rs 13,789.12 crore by 10.15 am. IndiGo shares have surged 18 per cent in 2025 so far and 28 per cent in the past six months.

The Nifty Next 50 constituent was expected to see a block deal of just over Rs 6,800 crore at a floor price of Rs 5,175. This was at a 4.5 per cent discount to the Monday's closing price. Rakesh Gangwal and The Chinkerpoo Family Trust were said to be the selling shareholders.  As per a Reuters report, Rakesh Gangwal sold a 5.7 per cent stake in the low-cost carrier through a block deal worth about $1.36 billion. The shares were sold at Rs 5,230.50, the report suggested.

The Gangwal family owned a 13.53 per cent stake in IndiGo at the end of March quarter. MOFSL noted that IndiGo has adopted a completely different operational strategy after Pieter Elbers joined the company as the new CEO in September 2022.

"With over 30 years of experience across various roles at KLM Royal Dutch Airlines, he brings deep industry expertise that has significantly contributed to IndiGo’s ability to compete with global players and steadily grow its domestic market share. However, this also introduces a potential ‘key man’ risk," the report noted.

IndiGo currently serves over 100 million passengers annually and adds, on average, one aircraft per week to its fleet. In FY25, the airline expanded its international market presence, capturing 30 per cent of its Available Seat Kilometers (ASK) through strategic global airline partnerships. The company continues to bolster its international footprint through loyalty programs, proactive brand-building initiatives, and optimized scheduling aimed at improving reliability and appealing to a broader base of international travellers.

The recent rally in IndiGo shares was driven by strong demand and higher airfares in Q4FY25, supported by the Maha Kumbh festival, a decline in crude oil prices, and a strengthening rupee. According to Elara Securities, passenger volumes for IndiGo continued to accelerate throughout FY25, rising from 5 per cent year-on-year growth in Q1FY25 to 20 per cent in Q4FY25.

"In FY26, we expect IndiGo to maintain its competitive edge, driven by continued capacity additions," Elara noted in a recent report.

However, Nuvama Institutional Equities expressed a more cautious near-term outlook. The firm highlighted that capacity growth is currently outpacing demand, putting pressure on yields.

"Valuations are currently unsupportive, but a combination of positives makes the risk-reward profile balanced," Nuvama said. "We are trimming our FY26E EBITDAR estimate by 3 per cent, factoring in Q1FY26 guidance and potential pressure on yields and demand from geopolitical tensions. We are rolling over to FY27E, which results in a 9 per cent increase in our target price to Rs 5,199. We retain a ‘HOLD’ rating," it said.

Meanwhile, Motilal Oswal Financial Services (MOFSL) reiterated its Buy recommendation on IndiGo, with a target price of Rs 6,375.