IndiGo Co-Founder to Pare More Stake in Airline, Eyes $1 Billion

InterGlobe Aviation Ltd., the parent company of IndiGo, is reportedly set to see another major block deal by its co-founder Rahul Bhatia. This would be the second such sale by Bhatia, who owns a 35.7% stake in IndiGo through his travel conglomerate, InterGlobe Enterprises.

According to a report by CNBC-TV18, InterGlobe Enterprises is planning to offload up to a 4% stake in the airline, aiming to raise around $1 billion (₹8,600 crore). If the deal goes through, the holding would drop to approximately 32%.

In June 2024, Bhatia sold a 2% stake for ₹3,367 crore at an average price of ₹4,362 per share. Since then, IndiGo shares have surged over 20%, supported by strong financial performance, expanded capacity, and growing demand both domestically and internationally. Market watchers told the broadcaster that the current rally and near-record stock levels may be driving the timing of this potential sale.

In the last two trading sessions, IndiGo shares have declined amid the broader sell-off triggered by the Ahmedabad crash of an Air India Boeing 787 Dreamliner. On June 13, InterGlobe Aviation shares fell 3.71% to ₹5,280.

Since announcing his intention to exit InterGlobe Aviation in 2022, co-founder Rakesh Gangwal has steadily reduced his stake in the company. Over the past three years, he has raised more than ₹40,000 crore through a series of block deals. His holding has now dropped below 8%, down sharply from the 36.6% he held when IndiGo was listed.

InterGlobe Aviation posted a strong Q4 performance, with consolidated net profit rising 62% year-on-year to ₹3,067 crore, compared to ₹1,895 crore in the same quarter last year. Revenue from operations grew 24% to ₹22,152 crore, driven by robust domestic travel demand—boosted by events such as the Maha Kumbh—and favourable oil prices.

Operationally, the airline delivered solid numbers: EBITDA rose to approximately ₹6,948 crore with a margin of around 31%, passenger yield improved 2.4% to ₹5.32 per km, and the load factor climbed to 87.4%. IndiGo carried about 31.9 million passengers during the quarter, marking a 20% year-on-year increase. The company also proposed a ₹10 per share dividend.