Shares of Indigo Airlines have been left bleeding since yesterday amidst the news of its co-founder Rakesh Gangwal’s family likely selling between 5% and 8% stakes in the Indian airline’s parent company, InterGlobe Aviation Ltd.
Indigo Shares Bleed Amid Rs 7500 Crore Stake Sale
The stake to be sold by Indigo’s co-founder’s family is worth up to Rs 7,500 crore ($909.58 million), a Reuters report mentioned, citing CNBC Awaaz.
Shares of Indigo, which are still up more than 15% year to date, are down more than 2.5% today (at the time of filing this report) amid the stake sale news coming out. As per the Moneycontrol report, Indigo shares had fallen 2.75% yesterday on the NSE.
How Much Does Indigo’s Co-Founder’s Family Own In The Airline
Rakesh Gangwal and his wife, Shobha Gangwal, hold 13.23% and 2.99%, respectively, in InterGlobe as of March 31, while their Chinkerpoo Family Trust holds a 13.5% stake, according to exchange data mentioned in the report.
The Gangwal family will likely sell stakes in block deals when the lock-in for shares opens on July 15, the report said.
Shobha Gangwal had cut her stake in the company by over 4% in February. Rakesh Gangwal resigned from the company’s board in February 2022 and had said that he would cut his stake in the airline over five years, the report mentioned.
Rakesh Gangwal and Rahul Bhatia, who had co-founded IndiGo in 2006, fell out in early 2020 when the former sought to modify certain rules in the company’s articles of association.
Indigo currently has many competitors in the Indian aviation industry, including Air India, Air Asia India, Vistara, and SpiceJet, among others.
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