IndiGo Shares Dip Over 3% After Rakesh Gangwal Likely Unloads Rs 11,928-Cr Equity through Block Deals

Shares of InterGlobe Aviation, the parent company of low-cost carrier IndiGo, fell over 3% on May 27 after a major block deal in the counter was executed on the stock exchange. Around 2.26 crore shares, equating to a 5.8% stake in the airline, were offloaded at an average price of Rs 5,260.5 per share. The transaction fetched around Rs 11,928 crore for the seller.

While the identities of the buyers and sellers were yet to be officially confirmed, reports from Moneycontrol suggest that co-founder Rakesh Gangwal was behind the sale, continuing his phased exit from the airline.

According to the report, Gangwal and the Chinkerpoo Family Trust had been looking to sell up to a 3.4% stake at a floor price of Rs 5,175 per share, a 4.5% discount to IndiGo’s closing price on 26 May. That deal was expected to bring in Rs 6,831 crore (around $803 million) with investment banks of the likes of Goldman Sachs, Morgan Stanley, and JP Morgan taking the Gangwal family through the transaction.

Gangwal and his family currently hold a 13.5% stake in InterGlobe Aviation, and this isn’t their first stake sale. In March and August 2024, they sold off sizeable portions of their holding, raising Rs 6,783 crore and Rs 9,549 crore respectively.

These transactions are part of Gangwal’s ongoing plan to gradually reduce his stake in the airline, in the light of his resignation from the company’s board in February 2022. At the time, he had put forward his intention to pare down his holding over a five-year period.

As of 31 March 2025, IndiGo’s promoter group held a 49.27% stake in the airline, while public shareholders owned the remaining 50.73%.

Despite the recent dip in share price, IndiGo continues to show strong financial performance. On 21 May, the airline reported a net profit of Rs 3,067.5 crore for the March quarter, marking its second consecutive profitable quarter. The strong results were attributed to robust domestic travel demand. Revenue from operations rose 24% year-on-year to Rs 22,151.9 crore, up from Rs 17,825.3 crore the year before, though slightly below analysts’ expectations of Rs 22,500 crore.