Indigo block deal: Rakesh Gangwal, co-founder of the Interglobe Aviation Ltd, a parent company of veteran airline Indigo, and Chinkerpoo Family Trust have decided to sell their 3.1% stake in the company through block deals. Its total price is around ₹ 7,027 crore. Indigo market is the largest airline in the country according to the share.
Floor price and other conditions
In this deal, a floor price of ₹ 5,808 per share has been offered. This is about 4% less than the company’s closing price on Tuesday. The party selling stake has fixed a 150-day lock-up period on any share sale in the deal. This means that they will no longer sell additional stake for the next 5 months.
Plan to reduce Gangwal’s stake
Gangwal and his family gradually started reducing their stake after resigning from the interglobe board in February 2022. Its purpose is to get out of the company within five years, which was decided after a dispute over governance between Gangwal and co-founder Rahul Bhatia. He also sold 3.4% stake in May.
Station sales in last years
Since 2022, Rakesh Gangwal and his family have raised more than ₹ 45,300 crore by selling their stake in Interglobe Aviation.
In this way, the Gangwal family has reduced its stake in Indigo by selling gradually. After the new block deal, Gangwal Group will have a 4.78% stake in the Interglobe Aviation, which costs around ₹ 11,169 crore.
Indigo shares
IndiGo shares fell 1.39% on Tuesday to Rs 6,031.00. The stock has gone up 4.67% in the last 1 month. In the last 6, IndiGo shares have gained 35.73%. Investors have received 27.77% returns in 1 year. Indigo’s market cap is Rs 2.32 lakh crore.
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