Roadshows are probably under progress to determine investor interest, according to sources cited by CNBC TV18. As of December 31, 2023, the Gangwal family owned a 25.2% share in the largest domestic airline in the nation.
According to the article, Gangwals has sold a total of more than 12% of its stock in the last three tranches, and on February 13th, the 150-day lock-in period for additional stake sales ends. Gangwals sold 2.7% of the company for Rs 1,850 per share in September 2022, 3.7% at Rs 1,887 per share in February 2023, and 5.8% at Rs 2,400 per share in August 2023.
After news of a potential stake sale surfaced on Monday, IndiGo's stock saw a reduction in gains. Monday at 1500 hours saw a 2% increase in the price of IndiGo's shares on the BSE, to Rs 3,189.2, from the day's high of Rs 3,300.
The nation's largest airline, IndiGo, reported more than doubling its earnings after tax to Rs 2,998.1 crore for the December 2023 quarter, staying profitable for the sixth consecutive quarter despite having more than 70 of its aircraft grounded due to Pratt & Whitney engine problems.
The parent company of IndiGo, InterGlobe Aviation Ltd., reported a surge in profit after taxes in the third quarter of the current fiscal year from Rs 1,422.6 crore in the same period last year, largely due to increased passenger traffic and more capacity.
According to a release, the company's earnings for the most recent quarter under review, excluding foreign exchange loss, was Rs 3,049.1 crore, up from Rs 2,009.1 crore during the same time the previous year. In comparison to the same period last year, the company's overall income increased to Rs 20,062.3 crore in the third quarter of the current fiscal year from Rs 15,410.2 crore.
"We reported a profit after tax of 30 billion rupees with a profit after tax margin of 15.4 percent for the third quarter of the financial year 2024. Pieter Elbers, CEO of IndiGo, stated, "With these five straight quarters of profit, we continue to recover from the losses of Covid and have now become net worth positive again."
"Our passenger ticket revenues were Rs 171,572 million, an increase of 30.3 percent, and ancillary revenues were Rs 17,600 million, an increase of 23.8% compared to the same period last year," IndiGo stated for the December quarter.
While the number of passengers increased by 23.4% to 27.5 million in the December quarter, capacity expanded by 26.8%.
The announcement stated that the load factor improved by 0.7 points to 85.8% and that the yield grew by 2.0% to Rs 5.48. The airline anticipates a 12% increase in capacity in the fourth quarter. The airline had a total cash balance of Rs 32,428 crore at the end of December 2023, which was made up of Rs 19,199.6 crore in free cash and Rs 13,228.5 crore in restricted cash.
"The year 2023 was filled with significant events. We joined the exclusive group of international carriers that operate at this level after serving more than 100 million passengers in a single calendar year. In the press release, Elbers stated, "We started operating more than 2,000 daily flights to 118 destinations," he concluded.
