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 11,385 crore (USD 1.33 billion) through a block deal, according to sources. 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 for divesting its stake in IndiGo, the country's largest airline, the sources said. Investment banking firms Goldman Sachs (India) Securities Pvt Ltd, Morgan Stanley India Company and J P 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 2.2 crore equity shares were sold at a floor price of Rs 5,175 per share, as per the updated term sheet seen by media. The total number of shares has been raised from the initial 13.2 million shares (1.32 crore shares) worth around USD 803 million (around Rs 6,831 crore) mentioned in the earlier term sheet. The floor price is at a 4.5 per cent discount compared to the closing price of Rs 5,420 per share on Monday. The sources said 2.2 crore shares amount to around 5.7 per cent stake in the company, and the offer size, based on the floor price, is pegged at around USD 1.33 billion or about Rs 11,385 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, Gangwal had sold shares of IndiGo 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 Gangwal divested a 4 per cent stake in the company for Rs 2,944 crore. Later in August, Shobha Gangwal sold a nearly 2.9 per cent stake in the company for a little over Rs 2,800 crore.