A major stake in Indigo Airline is about to be sold. The report claimed that the Gangwal family, who are its promoters, could sell shares worth $450 million, or Rs 3,730 crore, through a block deal on Wednesday. The Gangwal family will hold 15.6 million shares in a block deal at Rs 2,400 per share. A discount of 5.8 per cent has been given on these shares.
Economic Times has said in its report that Morgan Stanley, JP Morgan and Goldman Sachs are bankers in this deal. According to BSE data, the Gangwal family holds 29.72 per cent stake in Indigo Airlines and its total holding by the promoters stood at 67.77 per cent at the end of June 2023.
According to the current market price in IndiGo, the total Gangwal family stake is Rs 29,218 crore and the market capitalization of India’s largest airline is Rs 98,313 crore. The Gangwal family’s stake in the airline was 36.66 per cent in June 2022 and its co-founder Rakesh Gangwal has been reducing his stake since then.
In February last year, Rakesh Gangwal resigned from the Indigo board and said that he would sell the stake in the next five years. Significantly, on the occasion of operations, Indigo made a profit of Rs 3,090 crore in the first quarter of the financial year and got a revenue of Rs 17,160 crore. Highest-ever quarterly profit and revenue, which exceeded consensus expectations by 80%.
It carried 26.2 million passengers in the June 2023 quarter with a load factor of 88.6 per cent. Indigo had a fleet of 316 aircraft at the end of June 2023 and a total of 12 passenger aircraft were added during the quarter. The airline is looking to increase its fleet by around 25 per cent compared to the second quarter of FY2023.
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