IndiGo's top shareholder to sell 2% stake worth Rs 3,290 crore

Interglobe Enterprises, the biggest shareholder in Interglobe Aviation, the operator of IndiGo airline, will sell a 2 per cent stake in the low-cost carrier on Tuesday.
Last Updated : 11 June 2024, 04:49 IST
Last Updated : 11 June 2024, 04:49 IST

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Bengaluru: IndiGo airline's biggest shareholder will sell a 2 per cent stake worth $394 million (Rs 3.290 crore) in the low-cost Indian carrier on Tuesday, per a term sheet seen by Reuters, marking its first such sale in at least four years during which the company's stock has soared.

Interglobe Enterprises, which had a 37.75 per cent stake in Interglobe Aviation, the operator of IndiGo, will sell the shares at a base price of 4,266 rupees each, the term sheet showed.

That is a 6.6 per cent discount to the stock's closing price on Monday. The stock slid 3.6 per cent to 4,403.40 rupees on Tuesday.

Interglobe Enterprises, led by Rahul Bhatia, the co-founder of IndiGo, cannot sell further shares for another 365 days, the term sheet showed.

This is Interglobe Enterprises' first stake sale in at least four years, per exchange data, during which the stock has more than quadrupled in value.

In contrast, Rakesh Gangwal, IndiGo's other co-founder, and his wife Shobha have trimmed their stake for more than a year now through multiple share sales.

Still, IndiGo's stock has risen roughly 85 per cent over the last one year, hitting multiple all-time highs during that period.

Interglobe Enterprises also operates in the hospitality as well as logistics sectors, and has partnered with US-based Archer Aviation to start electric air taxis in India.

Around 1.1 million IndiGo shares changed hands via block trades on Tuesday, per National Stock Exchange data, all at a discount to the last closing price, but above the base price.

IndiGo has over a thousand jets on order from Airbus, is betting on long-haul travel and will introduce business-class cabin later this year.

Citigroup is the sole broker for the deal.

Published 11 June 2024, 04:49 IST

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