Rakesh Gangwal, one of the co-founders and key figures behind India's leading airline, IndiGo, made headlines on Monday as he initiated the sale of a significant portion of his stake in the company. This move, totaling 5.83 per cent of the airline's ownership, amounted to a staggering Rs 6,785 crore through open market transactions.
This decision to reduce his shareholding was initially announced back in February 2022, following a contentious dispute with fellow co-founder Rahul Bhatia concerning perceived corporate governance issues within the company.
The sale was executed in three tranches, involving a total of 2.25 crore shares of InterGlobe Aviation. The transaction prices ranged from Rs 3,015.10 to Rs 3,016.36 per share, as per data from bulk deals on the BSE. Notably, these shares were sold at a discount compared to the company's closing price of Rs 3,214.25 per share on the BSE, although the stock still managed to close the day with a 3.63 per cent gain, despite a red finish for the benchmark Sensex.
InterGlobe Aviation, the parent company of the renowned budget carrier IndiGo, commands a dominant domestic market share of over 60 per cent.
In a separate development, Morgan Stanley Asia (Singapore) Pte acquired 21 lakh shares, representing a 0.5 per cent stake in InterGlobe Aviation, according to bulk deal data. These shares were procured at an average price of Rs 3,015.10 each, amounting to a deal size of Rs 633.17 crore. Details regarding other buyers involved in the transaction remain undisclosed.
As of December 2023, promoters and promoter group entities collectively held a 63.13 per cent stake in InterGlobe Aviation. Gangwal, alongside the Chinkerpoo Family Trust — with trustees Shobha Gangwal and JP Morgan Trust Company of Delaware — accounted for a significant portion of this ownership. Bhatia and InterGlobe Enterprises held a combined 37.92 per cent stake in the company, according to BSE data.
Gangwal and his wife, Shobha Gangwal, have been gradually divesting their shares in IndiGo since February 2022. Shobha Gangwal, in particular, made notable divestments, including a sale of nearly 2.9 per cent stake in August 2023 for over Rs 2,800 crore, and a prior divestment of 4 per cent stake in February 2023 for Rs 2,944 crore. In September 2022, both Rakesh Gangwal and Shobha Gangwal sold a 2.74 per cent shareholding for Rs 2,005 crore.
Following his resignation from the board of directors of InterGlobe Aviation in February 2022, coupled with his stated intention to gradually reduce his equity stake in the airline over the subsequent five years, Gangwal's actions continue to reflect his evolving relationship with the company he helped establish.
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