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The family of IndiGo co-founder Rakesh Gangwal is likely to sell shares worth Rs 3,730 crore through a block deal on Wednesday, according to a term sheet. This is part of Gangwal’s plan to bring down his family's stake in the company.
The offer floor price for the deal is Rs 2,400 per share, which is a 5.8 per cent discount to the company’s last closing price of Rs 2,549 per share. The Gangwal family has put up 15.6 million shares for sale, representing approximately 4 per cent of its existing outstanding shares in the company.
The total stake of the promoters in InterGlobe Aviation stood at 67.77 per cent as of June 2023, of which Gangwal and his related entities held 29.72 per cent, according to the BSE data. After Wednesday’s block sale, the Gangwal family’s stake in the company would come down to 25.72 per cent.
Morgan Stanley, JPMorgan, and Goldman Sachs are bankers to the deal.
IndiGo did not immediately respond to Business Standard’s email requests for statements on the matter. A block deal is where shares valued at more than Rs 5 crore or minimum 500,000 shares of a listed company are sold in one tranche.
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Gangwal had resigned from the IndiGo board in February last year. He had stated that he would gradually reduce his stake in the company over the next five years.
The Gangwal family owned a 36.61 per cent stake in InterGlobe Aviation in June 2022. The other co-promoter, Rahul Bhatia, and his related entities had a holding of 38.17 per cent during the same time last year.
In September last year, the Gangwal family sold about 2.8 per cent stake through block deals for around Rs 2,000 crore, bringing down its holdings to 33.78 per cent.
In February this year, the Gangwal family reduced its stake by a further 4 per cent for around Rs 2,900 crore in a block deal. This reduced its holding to the current 29.72 per cent.
One of the founders of IndiGo, Gangwal was the president and chief executive officer of US Airways Group from 1998 until his resignation in 2001. He later served as head of travel technology firm Worldspan Technologies before setting up IndiGo with Rahul Bhatia.
The airline posted its highest ever quarterly consolidated net profit at Rs 3,090.6 crore for the first quarter of 2023-24 (FY24). In Q1FY23, the carrier had incurred a consolidated net loss of Rs 1,064.2 crore.
The company’s shares ended Monday’s session 1.33 per cent higher at Rs 2,548.35 on the BSE. Its market capitalisation stands at Rs 98,313 crore.
