Rakesh Gangwal, family trust sell 5.7% stake in IndiGo for Rs 11,559 cr

New Delhi: InterGlobe Aviation promoter Rakesh Gangwal and his family trust on Tuesday sold a 5.7 per cent stake in the airline for about Rs 11,559 crore (USD 1.36 billion) through a block deal, according to sources.

Following the stake sale, shares of InterGlobe Aviation slipped 2.20 per cent to trade at Rs 5,301 apiece on the NSE in late afternoon trade.

Apart from Gangwal, the Chinkerpoo Family Trust, whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware, has also participated in the transaction in the country's largest airline IndiGo, the sources said.

Investment banking firms Goldman Sachs (India) Securities Pvt Ltd, Morgan Stanley India Company and JP Morgan India are the placement agents for the stake sale, they added.

Before the latest transaction, Gangwal and the family trust together owned about 13.5 per cent in IndiGo.

As per the latest block deal, up to 2.21 crore equity shares were sold at a final price of Rs 5,230.50 per share, as per a revised term sheet seen by PTI.

The total number of shares has been raised from the initial 13.2 million shares (1.32 crore shares) mentioned in the earlier term sheet.

The final price is at a 3.5 per cent discount compared to the closing price of Rs 5,420 per share on Monday.

The sources said 2.21 crore shares amount to around 5.7 per cent stake in the company, and the offer size, based on the final price, is pegged at nearly USD 1.36 billion or about Rs 11,559 crore.

The share sale, executed through multiple tranches on BSE and NSE, is entirely secondary in nature.

As part of the deal structure, a 150-day lock-up period will apply to the vendors and their immediate relatives, barring one exception -- they may transfer shares worth at least USD 300 million to a single investor or investor group through a negotiated transaction, subject to certain pricing and lock-up conditions.

In August 2024, Rakesh Gangwal's family trust sold a 5.24 per cent stake in the airline for Rs 9,549 crore. Before that, it had sold shares in March.

The share sale is part of Gangwal's decision in February 2022 to trim his shareholding after a bitter feud with co-founder Rahul Bhatia over alleged corporate governance issues.

Since February 2022, Gangwal and his wife Shobha Gangwal have been offloading their shares in IndiGo.

In September 2022, Rakesh Gangwal and Shobha Gangwal sold a 2.74 per cent shareholding for Rs 2,005 crore. In February 2023, Shobha divested a 4 per cent stake in the company for Rs 2,944 crore. Later in August, she sold a nearly 2.9 per cent stake in the company for a little over Rs 2,800 crore.