IndiGo Shares Decline by 4.48% as Reports About Block Deal
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Against the previous close on NSE of Rs. 1,912.05, the IndiGo airlines stock declined by 4.48% to Rs. 18,897.00. The market capitalization of IndiGo as a result of the stock decline price was Rs. 73,346. The news is that the wife of Rakesh Gangwal (co-founder of IndiGo), Shobha Gangwal will sell the aviation company shares of a 4% stake through a block deal. And this event triggered the shares of InterGlobe Aviation Ltd. to fall over 4% on NSE. The company in question is the parent of IndiGo.
This is the second time that a sale of shares by the Gangwal family has occurred. The last instance was in the last year, September. The Gangwal family then sold a 2.8% stake in IndiGO airlines for around $250 million. According to the reports, the block deal has 1.56 crore shares. Per share, the cost is Rs. 1,875 as the floor price in the sale organized by Shobha Gangwal. Wednesday’s closing price was at a 5.6% discount for InterGlobe.
At this floor price, the sale is expected to generate $353 million or Rs. 2,930 crores for the Gangwal family. Shobha Gangwal holds a 7.04% stake in InterGlobe and Rakesh Gangwal has a 13.23% stake in the same company. Their Chinkerpoo Family Trust however has a 13.50% stake in the firm. In September 2022, they sold a 2.75% stake, 7 months after Rakesh Gangwal’s resignation from the company board, he said he will cut his stake over 5 years in the airlines.
Rahul Bhatia and Gangwal co-founded IndiGo airlines in 2006. But in early 2020, the association fell out as the latter modified some of the company rules for articles of association. About 37.8% stake is owned by Bhatia and his family in IndiGo.
