Rakesh Gangwal: Rakesh Gangwal, co-founder and promoter of the country’s largest airline, IndiGo, is about to sell his major stake. He can do a block deal of about $850 million (Rs 7000 crore) to sell his stake in IndiGo’s parent company, Interglobe Aviation.
Rakesh Gangwal resigned from the Board of Directors of InterGlobe Aviation in February 2022, saying he would gradually reduce his stake in the budget airline over the next 5 years.
Can Do A Deal At Rs 4,593 Per Share
CNBC-TV18 has claimed in a report quoting sources that IndiGo Airline promoter Rakesh Gangwal is preparing to do a deal at Rs 4,593 per share to sell his stake in the airline’s parent company InterGlobe Aviation. This block deal can be done for $ 850 million. On Wednesday, IndiGo’s shares closed at Rs 4859.85.
Gangwal Family Has About 19 Percent Stake
Rakesh Gangwal has a 5.89 percent stake in IndiGo until June 2024. His wife, Shobha Gangwal, and JPMorgan Trust of Delaware have a 13.49 per cent stake in the airline, bringing their total stake to 19.38 per cent. The Gangwal family has been planning to reduce its stake in the airline for a long time. He also clarified at his resignation that he wanted to reduce his stake gradually.
InterGlobe Aviation Stock Up 63 Percent This Year
So far this year, InterGlobe Aviation’s shares have jumped a tremendous 63 percent. In the quarter that ended June 2024, InterGlobe Aviation earned a profit of Rs 2,736 crore, 11.5 per cent less than the net profit of Rs 3,090.6 crore in the same period a year ago. Due to the rapid increase in domestic travel, the airline exceeded market expectations in the first quarter results of FY 2025. Jefferies has upgraded the company’s stock to Buy and increased the target price to Rs 5,225 per share.
