In a significant development, shares of InterGlobe Aviation Ltd., the parent company of IndiGo, saw a massive block deal on Thursday, August 29, with shares worth $1.3 billion (approximately ₹11,000 crore) changing hands. This transaction, amounting to 2.3 crore shares or 6% of the company’s equity, was executed at ₹4,760 per share.
Key Highlights:
Rakesh Gangwal's Potential Exit:
Sources close to the matter indicated that Rakesh Gangwal, co-founder of IndiGo, was likely the seller in this block deal, offloading up to 5.8% of his stake in the company. Gangwal, who held around 20% stake in IndiGo through various entities as of June 2024, had earlier been reported to be considering selling a significant portion of his holdings.
Financial Performance Overview:
IndiGo reported a 12% year-on-year decline in net profit for the first quarter ending June 30, 2024, posting a profit of ₹2,729 crore compared to ₹3,091 crore in the same quarter the previous year.
Market Reaction:
Following the block deal, IndiGo shares were trading slightly lower, with a 0.53% decline to ₹4,743.05 per share at 10:30 am on Thursday, August 29. The transaction has drawn significant attention due to the involvement of Rakesh Gangwal, a key figure in the company's history, and the substantial amount of equity exchanged.
This development underscores the dynamic nature of shareholder movements within major corporations like IndiGo and highlights the ongoing shifts in ownership that can have a considerable impact on market perceptions and stock performance.
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