Wednesday, August 16, 2023

IndiGo co-founder Rakesh Gangwal may sell 4% stake in airline: Report

IndiGo co-founder Rakesh Gangwal and his family are likely to sell shares worth $450 million (Rs 3,730 crore) via a block deal on Wednesday, according to a media report. Gangwal family has offered around 15.6 million shares on the block, equal to 4 per cent stake in the airline, at a floor price of Rs 2,400 per share, The Economic Times reported. This is nearly a 6 per cent discount from the closing price on Monday.

Morgan Stanley, JPMorgan, and Goldman Sachs are the bankers advising the Gangwal family on the block deal.

As of June 30, 2023, Gangwal family had 29.72 per cent stake in IndiGo Airlines, and the total stake of promoters stood at 67.77 per cent. After the block deal, the Gangwal family's stake will fall to about 25.72 per cent. The total stake of Gangwal family, at the current market price, is valued at over Rs 29,000 crore.

Rakesh Gangwal resigned from the board of directors at InterGlobe Aviation in February last year. At the time of his resignation, Gangwal said he will gradually do away with his equity stake over the next five years. 

On the operating front, InterGlobe Aviation (IndiGo) said its quarterly profit after tax hit a record high of Rs 3,090.60 crore in the June quarter compared with a loss of Rs 1,064.30 crore in the corresponding quarter last year. Total income for the quarter came in at Rs 17,160.90 crore which was the highest ever, the airline said in a BSE filing, adding that its results reflect strong operational performance, execution of strategy and favourable market conditions.

16/08/2023 Business Today

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