Rakesh Gangwal's Chinkerpoo Family Trust recently sold a 5.24% stake in InterGlobe Aviation, the parent company of IndiGo, India's largest airline. The sale, conducted through open market transactions on Thursday, amounted to Rs 9,549 crore. According to data from the Bombay Stock Exchange (BSE), over 2.02 crore shares were divested in three separate transactions. The shares were sold at prices ranging from Rs 4,714.95 to Rs 4,715.89 per share.
According to Mint, the stock's value closed 2.06% lower on the day, despite the Sensex ending in positive territory. Morgan Stanley Asia (Singapore) Pte was a notable buyer, acquiring a 0.74% stake in the company for Rs 1,345.63 crore. However, details about other buyers were not disclosed.
This is not the first time Gangwal has sold his stake in IndiGo. Earlier this year, in March, he made a similar transaction. Since his resignation from the InterGlobe Aviation board in February 2022 due to disagreements with co-founder Rahul Bhatia, Gangwal has been gradually reducing his holdings in the company. His wife, Shobha Gangwal, has also divested significant shares, selling nearly 2.9% of the company in August 2023 for over Rs 2,800 crore.
The recent sale is one of the largest block equity transactions in India this year, following deals involving ITC Ltd. and Indus Towers Ltd. Currently, InterGlobe Aviation dominates the Indian domestic airline market, with a 62% market share, far ahead of its closest competitor, Air India Ltd., which holds 14%.
Gangwal's gradual exit from IndiGo reflects his intent to reduce his involvement in the company over time, following his departure from the board.
