Rakesh Gangwal, the co-founder of India’s largest low-cost airline, IndiGo, has recently sold a significant 5.7% stake in the company through a block deal worth approximately $1.36 billion, according to a term sheet that was made available on Tuesday. This strategic sale involved around 22.1 million shares, a substantial increase from the initially planned sale of up to 13.2 million shares valued at roughly $803 million.
The shares were sold at a price of ₹5,230.5 per share (equivalent to about $61.35), which represented a discount of 3.5% compared to IndiGo’s closing stock price on the previous trading day, Monday. Prior to this transaction, Gangwal held approximately 13.5% of the total shares in IndiGo, and this sale has reduced his stake by nearly half.
The block deal was led by some of the world’s top investment banks, including Goldman Sachs, Morgan Stanley, and JPMorgan, indicating strong institutional interest and a well-coordinated effort to facilitate this high-value transaction. The sale is notable because it marks one of the largest share sales by an individual stakeholder in IndiGo in recent years.
IndiGo, known for its dominant position in the Indian aviation sector, has not yet issued an official comment regarding the stake sale. This move by Gangwal could reflect a variety of strategic or personal financial decisions, possibly including portfolio diversification or capital reallocation.
This transaction is taking place against the backdrop of an evolving aviation market in India, where IndiGo continues to face competitive pressures and opportunities amid fluctuating fuel prices and changing travel demand post-pandemic. The substantial liquidity generated by this sale might also reflect confidence in the broader market conditions or be a response to personal investment strategy needs of Gangwal.
Overall, the $1.36 billion block deal highlights the significant valuation and investor interest in IndiGo, while simultaneously signaling a key change in the shareholding pattern of one of India’s most prominent airline companies.
