IndiGo, India’s largest airline by market share, is back in the spotlight. Rakesh Gangwal, one of the co-founders of IndiGo, along with his family, is planning to sell up to 3.4% of their stake in the airline. This will be done through block trades, a method often used for bulk selling of shares without disrupting the market too much.
Currently, Gangwal and his family — including The Chinkerpoo Family Trust — hold around 13.5% stake in IndiGo.
According to reports, the floor price for this sale has been set at ₹5,175 per share, which is around 4.5% lower than the closing price of ₹5,420 on May 26. This deal could fetch them nearly ₹6,831 crore, or roughly $803 million.
Block trades are usually preferred by large investors to offload big chunks of shares efficiently. In this case, the deal is being handled by top investment banks — Goldman Sachs, Morgan Stanley, and JP Morgan — who are advising the Gangwal family.
This is not the first time the Gangwal family is trimmed their stake in IndiGo. They had previously sold significant portions in August and March last year. The continued stake sale is being seen as part of their ongoing exit strategy from the airline business.
What Should Investors Know?
The IndiGo stock has been one of the top performers in the aviation sector, supported by its strong market presence and operational performance. But large stake sales like this can sometimes lead to short-term volatility in the stock.
However, analysts often suggest that such stake sales don’t reflect business fundamentals, but rather the personal decisions of promoters. It’s important for retail investors to look at the bigger picture and focus on the company’s performance.
With ₹6,831 crore on the table, this sale is among the larger promoter exits in recent times.
As always, investors should wait and watch how the stock behaves in the short term and make informed
