InterGlobe Aviation shares drop 3.5% amid reports of promoter selling stake

New Delhi: Shares of InterGlobe Aviation, the parent of IndiGo, declined 3.50 per cent on Tuesday morning trade amid reports that promoter Rakesh Gangwal and his family trust are likely to offload up to 3.4 per cent stake in the airline.

After a weak start to the trade, the company's stock further dropped 2.99 per cent to Rs 5,256 on the BSE.

At the NSE, the stock went lower by 3.49 per cent to Rs 5,230.50.

InterGlobe Aviation promoter Rakesh Gangwal and his family trust are likely to offload up to 3.4 per cent stake worth at least Rs 6,831 crore in the airline on Tuesday, according to sources.

Gangwal, the co-founder of IndiGo, has been offloading his holding in a phased manner following a bitter fallout with co-founder Rahul Bhatia.

Apart from Gangwal, the Chinkerpoo Family Trust, whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware, will be divesting 3.4 per cent stake in IndiGo, the country's largest airline, the sources said.

Currently, Gangwal and the family trust together hold about 13.5 per cent in IndiGo.

Under the proposed transaction, to be executed on May 27, up to 1.32 crore equity shares will be sold at a floor price of Rs 5,175 per share, as per the term sheet accessed by PTI.

The sources said 1.32 crore shares will amount to around 3.4 per cent stake in the company and the offer size, based on the floor price, is pegged at around USD 803 million or about Rs 6,831 crore.