Gangwal Family Trust Divests 5.24% Stake in IndiGo for Rs 9,549 Crore

InterGlobe Aviation promoter Rakesh Gangwal's family trust sold a 5.24% stake in the airline for Rs 9,549 crore on Thursday through open market transactions. This move follows Gangwal's decision in February 2022 to reduce his shareholding after a dispute with co-founder Rahul Bhatia over corporate governance issues.

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Details of the Share Sale

The Chinkerpoo Family Trust sold over 2.02 crore shares of InterGlobe Aviation in three tranches, priced between Rs 4,714.95 and Rs 4,715.89 per share. This resulted in a total transaction value of Rs 9,548.95 crore. The stock closed with a 2.06% discount, while the benchmark Sensex ended positively.

Market Impact and Stakeholders

Morgan Stanley Asia Singapore Pte acquired 28.54 lakh shares, representing a 0.74% stake in InterGlobe Aviation, at an average price of Rs 4,714.90 per share, amounting to Rs 1,345.63 crore. Other buyers' details were not available. As of the June quarter, promoter and promoter group entities held a 55.29% stake in InterGlobe Aviation.

Previous Share Sales

This is the second instance this year where Gangwal has sold IndiGo shares; he previously sold shares in March. Since February 2022, Gangwal and his wife Shobha have been selling their stakes in IndiGo. In August 2023, Shobha Gangwal sold nearly a 2.9% stake for over Rs 2,800 crore.

Gangwal's Resignation and Future Plans

In February 2022, amid differences with co-founder Rahul Bhatia, Gangwal resigned from InterGlobe Aviation's board of directors and announced plans to gradually reduce his equity stake over five years.

Current Shareholding Structure

At the end of the June quarter, Rakesh Gangwal held a 5.89% stake in the airline, while the Chinkerpoo Family Trust owned a 13.49% shareholding. Bhatia and InterGlobe Enterprises collectively held a 35.91% stake.

In February 2023, Shobha Gangwal divested a 4% stake for Rs 2,944 crore. In September 2022, Rakesh and Shobha sold a combined 2.74% shareholding for Rs 2,005 crore.

InterGlobe Aviation is the parent company of IndiGo, which holds over a 60% domestic market share.

The recent transactions reflect ongoing changes in the ownership structure of InterGlobe Aviation as part of Gangwal's strategy to reduce his involvement in the company gradually.