IndiGo shares fell by over 2% on August 29 following a significant block deal involving a 6% stake in its parent company, InterGlobe Aviation. The share price of InterGlobe Aviation dropped by 2.25%, reaching intraday lows of Rs 4,750.55 on the NSE. Details of the Block Deal The transaction, valued at Rs 11,000 crore, involved the sale of approximately 2.3 crore shares at a floor price of Rs 4,760 each. This move is believed to be part of a strategy by promoter and co-founder Rakesh Gangwal to achieve a near-complete exit from the company. Following the stake sale, IndiGo shares experienced a slight decline, trading at Rs 4,838 on the NSE at 9:22 AM, down about 0.45% from the previous close. The specific buyers and sellers of the shares could not be immediately verified. Also ReadRIL’s 47th AGM today: A look at how the stock performed in last one year Gangwal's Future Plans and Lock-In Period Media reports from August 28 indicated that Gangwal was looking to further reduce his stake by offloading equity worth Rs 10,300 crore, which approximates a 5.8% stake at the discounted share price. This stake sale will trigger a 150-day lock-in period before Gangwal can execute another tranche of the sale. His move aligns with a broader plan to gradually reduce his holding in IndiGo following his resignation from InterGlobe Aviation's board of directors in February 2022. Gangwal had announced intentions to decrease his stake in the low-cost airline over a five-year period. Current Stake and Previous Sales As of the end of the June quarter, the Gangwal-backed promoter group held a 19.38% stake in InterGlobe Aviation, while Gangwal personally owned 5.89% of the company. The promoter group's stake has decreased significantly from 36.7% in 2019 to 19.38% by June 2024. This total includes a 13.49% stake held by the Chinkerpoo Family Trust, managed by Shobha Gangwal and JP Morgan Trust Company of Delaware, alongside Gangwal's personal 5.89% stake. The first tranche of the stake sale occurred in September 2022, when the Gangwal family sold 2.8% of the airline for Rs 2,000 crore. Also ReadNifty soars to record high on positive global, domestic cues This was followed by another sale in February 2023 of an additional 4% for Rs 2,900 crore. In August 2023, Shobha Gangwal, Rakesh Gangwal’s wife, sold her nearly 3% stake in InterGlobe Aviation for Rs 2,801.8 crore. IndiGo Stock Performance in Last One Year In terms of stock performance, IndiGo shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 6.98% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 50.54%, indicating a strong upward trend. Year-to-date, IndiGo shares have surged by 59.68%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 91.20% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
