IndiGo promoter Rakesh Gangwal sells $1.35 billion stake in block deal

Mumbai: IndiGo co-founder and promoter Rakesh Gangwal sold shares worth $1.35 billion in the airline through a block deal on Tuesday, according to a term sheet accessed by Mint.

On Monday, Mint reported that Gangwal was expected to sell shares worth $803 million via a block deal. However, the transaction size has since grown, according to the latest term sheet reviewed by Mint.

Under the updated terms, Gangwal and his Chinkerpoo Family Trust offloaded 22.1 million shares, or a 5.7% stake, at an offer price of ₹5,230.5 per share in InterGlobe Aviation Ltd, which operates IndiGo, India’s largest airline. This price reflects a nearly 3.5% discount to the stock’s Monday closing price of ₹5,418 on the BSE. 

Following the block deal, shares of the company traded at ₹5,294 a piece in opening deals, down from the previous close of ₹5,418 per share on the BSE on Monday. IndiGo’s shares have gained about 18% over the past year.

As of 30 March 2025, Gangwal held a 5.3% stake in the company, while the Chinkerpoo Family Trust owned 8.23%, according to BSE data. In contrast, as of November 2015, Gangwal owned 16.89% of IndiGo, and the trust held 15.64%, highlighting the significant reduction in their combined holdings over time.

Read this | IndiGo’s steep valuation premium to global peers could clip the stock’s wings

Goldman Sachs (India) Securities Pvt, Morgan Stanley India Co, and J.P. Morgan India Pvt are arranging the trade. Goldman Sachs declined to comment, while Gangwal, Morgan Stanley India, and J.P. Morgan India did not immediately respond to Mint’s requests for comment.

Gangwal has been gradually reducing his stake in the airline following a settlement agreement with co-founder Rahul Bhatia. He sold a 5.83% stake on 29 August 2024, after offloading an identical stake on 11 April 2024.

Flying high

IndiGo reported a 62% surge in profit in the fourth quarter ended March, driven by a spike in air travel during the Mahakumbh festival in January and February. 

Read this | IndiGo bets on overseas flights for growth

In its recent earnings call, the company said it has damp-leased six Boeing 737 widebody aircraft to support international expansion, with one already deployed on the Delhi–Bangkok route.

The airline is also betting on cargo revenue as a major growth opportunity. Management noted that India currently accounts for a single-digit share of international air cargo, indicating significant upside potential.

Also read | Company Outsider: IndiGo’s soaring valuation shows the power of privatization, liberalization’s unfinished agenda

“Indigo has a sturdy footing in its domestic business while enjoying over 60% market share. While covering over 89 destinations, the company has access to key ground slots at all prime airports,” Axis Securities said in a 16 April report. The brokerage said the low-cost airline can benefit from better infrastructural spending at current key airports and further spending on building new airports at freshly recognised key micro markets.