IndiGo’s co-founder and promoter, Rakesh Gangwal, is reportedly planning to sell up to $850 million worth of shares in InterGlobe Aviation, the airline’s parent company. According to CNBC-TV18, Gangwal is seeking to offload his stake through block deals at a discounted indicative price of Rs 4,593 per share.
As of June 2024, Gangwal held a 5.89% stake in IndiGo, while his wife Shobha Gangwal and JPMorgan Trust of Delaware together held 13.49%. This brings their combined holding to 19.38%. The planned stake sale is part of the Gangwal family’s gradual reduction in their ownership of the low-cost airline.
Gangwal’s decision to sell comes after he resigned from the board of directors of InterGlobe Aviation in February 2022, stating his intention to reduce his stake over the next five years.
Shares of InterGlobe Aviation have seen a significant rise of over 63% so far this year. The airline’s strong financial performance, highlighted by a net profit of Rs 2,736 crore in the quarter ended June 2024, has contributed to this growth.
Jefferies, a leading investment firm, has recently upgraded IndiGo’s stock to “Buy” and raised its target price to Rs 5,225 per share. The firm cited the airline’s consistent strong operating performance and the favorable industry dynamics as factors supporting its bullish outlook.
News Desk
