indigo bulk deal: IndiGo’s Gangwal family offloads 2.9% stake in Rs 2,800 crore deal

The family of IndiGo co-founder Rakesh Gangwal has sold partial stake in the budget carrier through bulk deals on Wednesday.

Sobha Gangwal, wife of Rakesh Gangwal, has offloaded 1.15 crore shares or 2.99% stake in the company at a weighted average price of Rs 2,426, which is about 5% discount from Monday’s close. Through the sale, the family earned nearly Rs 2,800 crore.

Rakesh Gangwal and his wife, Shobha Gangwal, held about 13.23% and 2.99%, respectively, in IndiGo at the end of June quarter, while their Chinkerpoo Family Trust holds a 13.5% stake, according to exchange data.

Earlier in February, Shobha Gangwal sold 1.56 crore shares totalling 3.7% equity through block deals. As of June quarter, promoters and related entities held about 67.77% in the company.

Following a feud with co-promoter Rahul Bhatia, Rakesh Gangwal had last year announced to reduce stake in the company gradually, besides stepping down from the board.

Meanwhile, on Wednesday, IndiGo’s shares fell 3.57% to settle at Rs 2,458 on NSE.

With more shares getting freed up from the promoter’s belt, the move would also lead to change in weightage in MSCI and FTSE indices.Considering Wednesday’s deal size, Nuvama said FTSE should include additional floating shares within the next few days itself.

“This inclusion is expected to generate a passive flow of approximately $15 million,” Nuvama said, adding that MSCI is likely to incorporate additional floating shares during the November review.

In the June quarter, the airline had swung to black by reporting a consolidated net profit of Rs 3,091 crore, compared with a loss of Rs 1,064 crore in the year-ago period.

Q1 was the highest-ever quarterly net profit reported by the budget carrier, which it says reflects strong operational performance, execution of strategy, and favorable market conditions. It ferried 26.2 million passengers in the June 2023 quarter with a load factor of 88.6%.

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