Coming as a positive development for India’s biggest airlines IndiGo, one of its co-founder raised about USD 820 million from selling part of its holding.
(File Photo)
Coming as a positive development for India’s biggest airlines IndiGo, one of its co-founder raised about USD 820 million from selling part of its holding.
This has been the largest block equity sale in the country since 2019.
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As per the reports, Rakesh Gangwal sold 22.5 million shares of InterGlobe Aviation Ltd. at Rs 3,015.10 per share.
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The number of shares on sale was increased from the 12.75 million initially expected and the final price was above the floor indication of Rs 2,925 each.
The report further suggested that Gangwal is cashing in with the stock trading near a record high, as a rapidly growing retail investor base and strong corporate earnings drive demand for Indian equities.
It’s the fourth time within two years that the co-founder has tapped investors through a block sale of IndiGo shares.
Reacting to the news, the shares of InterGlobe Aviation declined 3% in early trade on March 11 after a 6.7% stake changed hands in the block deal valued Rs 7,823 crore.
Morgan Stanley, JP Morgan, and Goldman Sachs were the investment banks advising Rakesh Gangwal and he and his family trust collectively own around 25 percent of InterGlobe Aviation, data showed.
It is worth highlighting that Rakesh Gangwal stepped down in February 2022 and announced plans to dilute his family’s stake.
Later, he sold a 4% stake for Rs 2,900 crore and again sold a 2.8% stake worth Rs 2,000 crore in September. In August his family divested a stake worth $450 million.
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