Gangwal Family to Sell Shares Worth Rs.3,730 Crores of Indigo Airlines
In line with a term sheet reviewed, the Gangwal family, the promoters of Indigo Airlines, are expected to sell shares worth $450 million (Rs 3,730 crore) in a block deal on Aug 16.
The Gangwal family has listed 15.6 million shares at a floor price of Rs 2,400 per share, a 5.8% discount to Monday's closing price.
Morgan Stanley, JPMorgan, and Goldman Sachs are the deal's bankers.
According to BSE data, the Gangwal family owned 29.72% of IndiGo Airlines, and promoters owned 67.77% of the company at the end of June 2023. At the current market price, the Gangwal family's total stake is valued at Rs 29,218 crore, while the market capitalisation of India's largest airline is Rs 98,313 crore. Rakesh Gangwal's stake in the Gangwal family was 36.66% in June 2022, and he has been reducing his stake since then.
Rakesh Gangwal resigned from IndiGo's board of directors in February and stated that he planned to sell his stake over the next five years.
On the operating front, Indigo had a profit of Rs 3,090 crore in the fiscal first quarter and revenue of Rs 17,160 crore—the highest ever quarterly profit and revenue, which was 80% higher than consensus expectation, driven by higher-than-expected yields and revenue passenger kilometer (RPK).