Promoter Rakesh Gangwal, family trust likely to sell 3.4% stake in IndiGo for `6,831 crore

New Delhi: InterGlobe Aviation promoter Rakesh Gangwal and his family trust are likely to offload up to 3.4 per cent stake worth at least Rs 6,831 crore in the airline on Tuesday, according to sources.

Gangwal, the co-founder of IndiGo, has been offloading his holding in a phased manner following a bitter fallout with co-founder Rahul Bhatia.

Apart from Gangwal, the Chinkerpoo Family Trust, whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware, will be divesting 3.4 per cent 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.

Currently, Gangwal and the family trust together hold about 13.5 per cent in IndiGo.

Under the proposed transaction, to be executed on May 27, up to 1.32 crore equity shares will be sold at a floor price of Rs 5,175 per share, as per the 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 1.32 crore shares will amount to around 3.4 per cent stake in the company and the offer size, based on the floor price, is pegged at around $803 million or about Rs 6,831 crore.

The proposed share sale, to be done in multiple tranches on BSE and NSE, will be entirely secondary in nature and will not have any fresh issuance of equity. 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 $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.