This Private Airline Shares Plunge On Block Deal Worth Rs 7,800 Crore; Co-Founder Offloads Stake

InterGlobe Aviation, the parent company of India's leading airline, IndiGo, witnessed a 3% decline in its shares, reaching Rs 3,020 per share, following a block deal involving 2.6 crore shares on March 11. This block deal represented a 6.7% stake, with a total transaction value of Rs 7,823 crore.

While the identities of the buyer and seller remain undisclosed, speculations had surfaced earlier when reports suggested that co-founder Rakesh Gangwal was contemplating selling a 3.3% stake to raise approximately Rs 3,723 crore. A CNBC-TV18 report hinted at a potential 5.8% stake sale. Morgan Stanley, JP Morgan, and Goldman Sachs were reportedly advising Gangwal on the transaction, as per Moneycontrol.

As of now, Gangwal and his family trust collectively own about 25% of InterGlobe Aviation. His decision to step down in February 2022 was coupled with an announcement to dilute the family's stake in a dispersed manner.

This recent block deal follows a series of divestments by the Gangwal family, including a 4% stake sale in February for Rs 2,900 crore and a subsequent 2.8% stake offloading in September, valued at Rs 2,000 crore. The largest block deal occurred in August, where the family divested a stake worth $450 million.

Despite these changes in ownership, IndiGo reported robust financials in the December quarter, showcasing a remarkable 111% jump in net profit. The surge was attributed to sustained demand for air travel and a fuel surcharge introduced in October. Net profit for the quarter stood at Rs 2,998.12 crore, compared to Rs 1,422.6 crore reported in the same period the previous year. The revenue from operations witnessed a significant increase of 30%, reaching Rs 19,452.15 crore.

Following the initial dip, InterGlobe Aviation's shares managed to recover from their opening lows and were seen trading with minor gains of 0.5% at Rs 3,120.05 per share as of 9:50 am on the National Stock Exchange (NSE). Over the past year, the stock has accumulated gains of nearly 65%, and the stock has seen an increase of almost 25% in the past six months.