IndiGo Co-Founder Rakesh Gangwal to Sell Up to $1.4 Billion Stake

IndiGo co-founder Rakesh Gangwal is set to sell a significant portion of his stake in InterGlobe Aviation, the parent company of IndiGo, through a block deal worth up to $1.4 billion. This move is part of Gangwal’s ongoing strategy to gradually exit the airline business, following his resignation from the board in 2022.

Key Highlights:
Stake Sale Details: Gangwal plans to sell up to 3.4% of IndiGo’s shares, valued at ₹68.31 billion ($803 million) in the first tranche.

Pricing Strategy: The shares will be sold at a floor price of ₹5,175 each, reflecting a 4.5% discount from the previous closing price.

Gradual Exit: Gangwal and his family have been reducing their stake since 2022, when he resigned from IndiGo’s board following a dispute with co-founder Rahul Bhatia.

Market Impact: IndiGo’s stock may experience short-term volatility due to the large stake sale, but analysts expect long-term stability given the airline’s strong financial performance.

Industry Position: IndiGo remains India’s largest airline, with a dominant market share and continued expansion in domestic and international routes.

Gangwal’s latest stake sale underscores his gradual exit strategy, while IndiGo continues to strengthen its leadership in the aviation sector.

Source: Economic Times, Business Standard, MarketScreener