Block Deal Alert: Rakesh Gangwal to Sell IndiGo Shares Worth ₹6,831 Crore

IndiGo share price is back in focus as co-founder Rakesh Gangwal plans to offload a 3.4% stake through a major block deal. The transaction, valued at ₹6,831 crore, is expected to be executed at a discount to the current market price, drawing significant attention from institutional investors.

Block Deal: IndiGo Co-founder Rakesh Gangwal to Offload ₹6,831 Crore Worth of Shares

According to a news report, Rakesh Gangwal, the co-founder of IndiGo, is set to sell a substantial part of his holding in InterGlobe Aviation through a block deal. The planned transaction involves up to 3.4% of his equity, potentially yielding ₹6,831 crore. The floor price for the sale is fixed at ₹5,175 per share, lower than the current market price of ₹5,309 as of 1:53 PM. 

Global Banks Managing the Deal

The block deal is being managed by leading global investment banks—Goldman Sachs, Morgan Stanley and JPMorgan. These financial institutions are responsible for structuring and executing the deal in the secondary market, indicating the size and complexity of the transaction.

Read More: IndiGo Revenue from Operations Soars 17.3% in FY25 Results & Proposed Dividend.

Part of Gangwal’s Broader Exit Plan

This move is part of Rakesh Gangwal’s broader plan to gradually step away from IndiGo. Since his resignation from the company’s board in 2022, he has been reducing his stake over time. Despite his exit from active management, Gangwal has continued to hold a significant ownership in the airline.

Gangwal’s Shareholding in IndiGo

According to Bloomberg, Rakesh Gangwal holds 5.3% of IndiGo directly. His family trust, The Chinkerpoo Family Trust, owns an additional 8.23%. Together, their holdings amount to approximately 13.5% of the company. The current sale will reduce this combined stake further.

Third Block Deal Since March 2024

This is not the first time Gangwal has divested his shares in IndiGo. It marks his third such transaction in just over a year. Since March 2024, he has sold equity worth close to $2 billion through previous block trades, indicating a consistent strategy to unwind his holdings.

Conclusion

The block deal comes on the heels of IndiGo reporting stronger-than-expected quarterly results. The airline’s performance was driven by increased travel demand, particularly during the 6-week Kumbh Mela festival. The timing may influence investor interest in the upcoming transaction.

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