IndiGo shares fall over 4% amid reports of block deal
1 min read . Updated: 16 Feb 2023, 09:39 AM IST
Premium- IndiGo stock lost 4.48% to ₹1,897.00 against the previous close of ₹1,912.05 on NSE. The market capitalization of the aviation company stood at ₹73,346 crore
Shares of InterGlobe Aviation Ltd, the parent of IndiGo fell over 4% in trade today amid report that Shobha Gangwal, the wife of IndiGo co-founder Rakesh Gangwal, will sell shares amounting to a four percent stake in the aviation company through a block deal.
IndiGo stock lost 4.48% to ₹1,897.00 against the previous close of ₹1,912.05 on NSE. The market capitalization of the aviation company stood at ₹73,346 crore.
This is the second instance of a share sale by the Gangwal family in InterGlobe Aviation after selling a 2.8% stake in the domestic carrier for approximately $250 million in September last year.
The block deal, according to reports, has been launched for 1.56 crore shares. The offer floor price for the sale by Shobha Gangwal has been set at ₹1,875 per share.
The price is at a 5.6% discount to InterGlobe's Wednesday closing price.
There is a lockup period for 150 days post block deal, according to reports.
The sale will fetch the Gangwal family ₹2,930 crore ($353 million) at the floor price.
Rakesh and Shobha Gangwal hold stakes of 13.23% and 7.04%, respectively in InterGlobe, while their Chinkerpoo Family Trust holds a 13.50% stake.
The Gangwals sold a 2.75% stake in September 2022, seven months after Rakesh Gangwal resigned from the company's board and said he would cut his stake in the airline over five years.
Gangwal and Rahul Bhatia, who co-founded IndiGo in 2006, fell out in early 2020 when the former sought to modify certain rules in the company's articles of association.
Bhatia and his family entities own about 37.8% of IndiGo.