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Rakesh Gangwal Plans ₹6,831 Crore Stake Sale in IndiGo; Shares Under Spotlight on 27 May 2025
Shares of InterGlobe Aviation, the parent company of India’s largest airline IndiGo, are expected to remain in sharp focus on Tuesday, 27 May 2025. This comes following reports that the company’s co-founder and former promoter, Rakesh Gangwal, along with the Chinkerpoo Family Trust, is preparing to offload a significant portion of their stake in the airline through a block deal worth up to ₹6,831 crore.
According to a report from the Press Trust of India (PTI), Gangwal and his family trust are expected to sell up to 3.4% of their holding in IndiGo. The share sale will be conducted via a block trade on the stock exchanges, where large volumes of shares are transacted in a single go, often at a discounted price.
Three global investment banks — Goldman Sachs (India) Securities, Morgan Stanley India Company, and JPMorgan India — have been appointed as placement agents for facilitating the stake sale.
Gangwal Family’s IndiGo Holding
As per the latest Bombay Stock Exchange (BSE) disclosures updated on 26 May 2025, Rakesh Gangwal currently holds a 5.3% equity stake in InterGlobe Aviation, amounting to 2,04,96,493 shares. Additionally, the Chinkerpoo Family Trust — managed by Shobha Gangwal and JP Morgan Trust Company of Delaware — owns 8.23% of the airline.
Together, the Gangwal family controls nearly 13.5% of IndiGo’s equity. With the proposed sale of up to 1.32 crore equity shares, their overall stake will significantly decline, as the transaction would reduce their holding by approximately 3.4%.
The floor price for the block deal has been set at ₹5,175 per share, which is slightly lower than the current market rate, offering institutional buyers a small discount. The share sale is expected to be executed in multiple tranches, possibly spread over the coming weeks depending on investor interest and market conditions.
Stock Market Reaction and IndiGo’s Performance
Shares of InterGlobe Aviation ended Monday’s trading session down by 1.78%, closing at ₹5,418.30 apiece. This marks a fall from the previous session’s close of ₹5,516.25. The stake sale announcement surfaced post-market hours, setting the stage for potentially heightened volatility during Tuesday’s trading.
Despite the slight dip, IndiGo shares have delivered remarkable returns to investors over both short and long-term periods:
- 5-Year Return: Over 461%
- 1-Year Return: 27.54%
- Year-to-Date (YTD) in 2025: 18.02%
- 1-Month Return: 1.55%
The aviation stock hit its 52-week high of ₹5,665.65 just last week on 19 May 2025, while the 52-week low stood at ₹3,778.50 on 28 October 2024.
As of the close of trading on Monday, IndiGo’s market capitalisation stood at an impressive ₹2,09,384.44 crore, reinforcing its position as one of the most valuable aviation companies in Asia.
What Does This Mean for Investors?
The proposed stake sale by the Gangwal family is not entirely unexpected. Rakesh Gangwal had earlier announced his intention to gradually reduce his holding in IndiGo following governance disputes with co-promoter Rahul Bhatia. The two had a highly publicized fallout, which eventually led Gangwal to step down from the company’s board in 2022.
For investors, such large-scale block deals often raise concerns over insider sentiment. However, the gradual and structured exit — especially when aligned with past announcements — is typically viewed more as a portfolio reshuffling than a red flag.
Analysts believe that while the share price might face near-term pressure due to supply-demand mismatch, the long-term fundamentals of IndiGo remain strong given its dominant market share, consistent profitability, and aggressive fleet expansion.
Market participants will closely monitor institutional interest in the block deal, which could signal confidence in the stock’s future trajectory.
Note : NuzTube INDIA has not written this article. This article is from a syndicate feed.
