IndiGo Share Price: InterGlobe Aviation Slides 3% as Co-Founder Offloads 5.7% Stake

IndiGo Share Price: The shares of InterGlobe Aviation, parent firm of low-cost airlines IndiGo, declined 3.04 per cent to hit an intraday low of Rs 5,256 after aviation promoter Rakesh Gangwal plans to divest 5.7 per cent stake in India's largest airline via block deal, according to a Reuters report.

This comes as part of Gangwal's phased divestment plan, which took shape after a fall out with Co-Founder of Indigo Rahul Bhatia.

Around 22.1 million shares were sold, the term sheet showed. The number of shares was increased from the original size of up to 13.2 million shares worth about $803 million. Gangwal held about 13.5 per cent of IndiGo shares, according to the term sheet accessed by Reuters.

Reportedly, the investment banking firms Goldman Sachs (India) Securities Pvt Ltd, Morgan Stanley India Company and J P Morgan India are the placement agents for the stake sale.

The share sale will be entirely secondary in nature and will not have any fresh issuance of equity.

As part of the deal structure, reportedly a 150-day lock-up period will apply to the vendors and their immediate relatives, barring one exception -- they may transfer shares worth at least USD 300 million to a single investor or investor group through a negotiated transaction, subject to certain pricing and lock-up conditions.

In August 2024, Rakesh Gangwal's family trust sold off a 5.24 per cent stake in the airline for Rs 9,549 crore. Before that, Gangwal had sold shares of IndiGo in March.

The stake sale is part of Gangwal's earlier decision to reduce his shareholding after a bitter feud with co-founder Rahul Bhatia over alleged corporate governance issues.

Since February 2022, Gangwal and his wife Shobha Gangwal have been offloading their shares in IndiGo.

In September 2022, Rakesh Gangwal and Shobha Gangwal sold a 2.74 per cent shareholding for Rs 2,005 crore. In February 2023, Shobha Gangwal divested a 4 per cent stake in the company for Rs 2,944 crore. Later in August, Shobha Gangwal sold a nearly 2.9 per cent stake in the company for a little over Rs 2,800 crore.

As of 1:52 pm on Tuesday, the shares of InterGlobe Aviation were trading 2.03 per cent lower at Rs 5,308.25.