Rakesh Gangwal, the promoter of InterGlobe Aviation, and his family trust sold a 5.7% stake in the airline in a block deal on Tuesday for approximately Rs 11,385 crore ($1.33 billion).

Key Highlights

• The sale, executed via a block deal, reduces their combined holding from 13.5% to 7.8%.
• The transaction involved 22.1 million shares sold at ₹5,175 each, a 4.5% discount.

According to sources, in addition to Gangwal, the Chinkerpoo Family Trust, whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware, has also taken part in the sale of its interest in IndiGo, the biggest airline in the nation.

According to the statement, Morgan Stanley India Company, JP Morgan India, and Goldman Sachs (India) Securities Pvt Ltd will serve as placement agents for the stake sale.

Before the latest transaction, Gangwal and the family trust owned approximately 13.5% of IndiGo.

According to the latest block deal, up to 2.2 crore equity shares were sold at a floor price of Rs 5,175 per share, according to an updated term sheet obtained by PTI.

The total number of shares has increased from the initial 13.2 million (1.32 crore shares) worth approximately $803 million (roughly Rs 6,831 crore) mentioned in the previous term sheet.

The floor price is 4.5 percent lower than the closing price of Rs 5,420 per share on Monday.

According to sources, 2.2 crore shares represent approximately 5.7% of the company's equity, and the offer size, based on the floor price, is estimated to be around $1.33 billion, or approximately Rs 11,385 crore.

The share sale, conducted in multiple tranches on the BSE and NSE, is entirely secondary in nature.

As part of the deal structure, the vendors and their immediate relatives will be subject to a 150-day lock-up period, with one exception: they may transfer shares worth at least $300 million to a single investor or investor group through a negotiated transaction, subject to certain pricing and lock-up terms.

In August 2024, Rakesh Gangwal's family trust sold a 5.24 percent stake in the airline for Rs 9,549 crore. Gangwal previously sold shares of IndiGo in March.

The share sale is part of Gangwal's February 2022 decision to reduce his stake following a bitter feud with co-founder Rahul Bhatia over alleged corporate governance issues.

Since February 2022, Gangwal and his wife Shobha Gangwal have been selling their IndiGo stock.

In September 2022, Rakesh Gangwal and Shobha Gangwal sold a 2.74 percent stake for Rs 2,005 crore. In February 2023, Shobha Gangwal sold a 4% stake in the company for Rs 2,944 crore. Later in August, Shobha Gangwal sold a nearly 2.9 percent stake in the company for slightly more than Rs 2,800 crore.