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Gangwal family to sell a portion of IndiGo’s stake worth $450 million via block deal on Wednesday.

According to a term sheet examined by ET, the Gangwal family, the promoter of Indigo Airlines, is expected to sell shares worth $450 million (Rs 3,730 crore) through a block auction on Wednesday.

The floor price for the 15.6 million shares, which is Rs 2,400 per share and represents a 5.8% discount from Monday’s closing price, has been set by the Gangwal family. At 9.18 am on the BSE, the company’s shares were trading 4% down at Rs 2,445 after opening lower. The deal’s creditors are Morgan Stanley, JPMorgan, and Goldman Sachs.

Also read, Sebi set to hand in final Adani report on Hindenburg allegations to Supreme Court.

Shares owned by the Gangwal Family:

According to BSE records, the Gangwal family owned 29.72% of IndiGo Airlines, while promoters owned a total of 67.76% of the company by the end of June 2023. At the current market price, the market capitalization of India’s largest airline was at Rs 98,313 crore, while the whole stake of the Gangwal family is valued at Rs 29,218 crore. Rakesh Gangwal has been reducing his interest ever since the Gangwal family’s holding of 36.66% was announced in June 2022.

In his letter of resignation from the IndiGo board in February of last year, Rakesh Gangwal promised to liquidate his stake over the following five years. Operating-wise, Indigo reported its highest-ever quarterly profit and revenue in the fiscal first quarter of Rs 3,090 crore and Rs 17,160 crore, respectively. These figures were 80% higher than consensus expectations due to better-than-anticipated yields and revenue passenger kilometres (RPK).

With a load factor of 88.6%, it transported 26.2 million passengers in the quarter ending in June 2023. IndiGo had a fleet of 316 aircraft at the end of June 2023 and added a net 12 passenger aircraft during the quarter. According to the company’s guidance, capacity in terms of available seat miles (ASKs) is anticipated to grow by around 25% in the second quarter of fiscal year 2024 compared to the same period in 2023.

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