Image Source: Aviation A2Z
The Rakesh Gangwal family is preparing to sell up to 3.1% of its stake in InterGlobe Aviation, the parent company of India’s largest airline IndiGo, through block deals. This planned share sale is part of a broader, ongoing phased exit strategy first announced in 2022, reflecting the promoter’s gradual reduction of holdings in the company. The block deal is expected to be priced at a floor of ₹5,808 per share, slightly discounted from the prevailing market price as of August 25, 2025, indicating an estimated total value of about ₹7,027 crore for the transaction. Global investment banks Goldman Sachs, Morgan Stanley, and JPMorgan are involved in managing these block deals, continuing their role in past stake sales by the promoters.
Key Highlights of the Stake Sale Plan:
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The Rakesh Gangwal family currently holds an aggregated promoter stake of about 7.8% in InterGlobe Aviation, split between Rakesh Gangwal’s 4.73% and the Chinkerpoo Family Trust’s 3.08%.
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The proposed block deal for up to 3.1% stake translates into approximately 1.21 crore shares being offered at ₹5,808 each.
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This sale is a continuation of the phased stake reduction initiated after Gangwal’s board resignation in February 2022, with total stakes offloaded over recent years amounting to more than 9%, raising over ₹12,900 crore since 2023 alone.
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Following this transaction, promoter holdings are expected to reduce from 7.8% to roughly 4.7%, marking a significant dilution in the Gangwal family’s ownership.
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The IndiGo stock remains robust, with a 28.19% gain over the last 12 months and a year-to-date increase of 32.84%, underscoring the attractiveness of the airline amid a challenging global aviation environment.
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Analyst consensus remains optimistic, with 20 out of 25 analysts rating the stock a ‘Buy’ and a consensus price target around ₹6,350, indicating potential upside from the current price.
The Gangwal Family’s Gradual Exit Strategy
Rakesh Gangwal, co-founder of InterGlobe Aviation, has progressively been reducing his stake in the company as part of a five-year monetization plan. His exit timetable commenced with his board departure in early 2022, followed by multiple block deals that shrunk his shareholding substantially. In May 2025 alone, the family sold a 3.4% stake for ₹6,831 crore in a similar block deal. This latest planned sale continues that trend, highlighting the promoter’s intent to unlock value while capitalizing on IndiGo’s strong market valuation.
Financial and Operational Context
Despite a slight 20% year-on-year decline in IndiGo’s net profit during its first quarter ending 2025, the company reported revenue growth of 4.7%. Challenges such as rising fuel costs and currency pressures weighed on profitability, but operational metrics remained strong, with an 84.2% passenger load factor and an 87.1% on-time performance—both above industry averages. IndiGo looks forward to robust demand growth, projecting early double-digit increases in available seat kilometers (ASK) for fiscal year 2026, propelled by fleet expansion and rising international operations.
Market Impact and Outlook
The block deal involving the Gangwal family’s stake is poised to attract investor attention given IndiGo’s dominant position in India’s aviation sector and improving financial outlook. With about 439 aircraft currently in its fleet (including grounded ones) and plans to induct around 50 new planes in 2026, strategic growth lies in boosting international capacity, expected to contribute about 40% of ASK by 2030, up from 28% in 2025.
Summary of Stakeholding and Sale Details:
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Current aggregated promoter stake: 7.8%
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Gangwal family stake being sold: up to 3.1%
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Number of shares on offer: approx. 1.21 crore
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Floor price per share: ₹5,808
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Estimated deal value: ₹7,027 crore
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Post-sale promoter stake: approx. 4.7%
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Banks managing deal: Goldman Sachs, Morgan Stanley, JPMorgan
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Recent gains in stock price: ~28% in last 12 months
This share sale marks a pivotal moment in InterGlobe Aviation’s promoter ownership structure, reflecting both the Gangwal family’s monetization objectives and confidence in the continuing strength and growth trajectory of IndiGo in India’s aviation market.
Source: CNBC-TV18, Business Today, IndiaBlooms, Economic Times
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