Potential Sale of IndiGo Co-Founder’s Family Stake Valued at up to $909.6 Million

In a recent development, it has been reported that the family of Rakesh Gangwal, co-founder of IndiGo Airlines, is considering the potential sale of a portion of their stake in InterGlobe Aviation Ltd, the parent company of the Indian airline. According to CNBC Awaaz, the family is likely to sell between 5-8% of their stake, amounting to a value of up to Rs 7,500 crore ($909.58 million). The information is based on sources familiar with the matter.

As of March 31, Rakesh Gangwal and his wife, Shobha Gangwal, held 13.23% and 2.99% stakes, respectively, in InterGlobe Aviation. Additionally, their Chinkerpoo Family Trust held a 13.5% stake, according to exchange data. The family plans to sell their shares in block deals once the lock-in period expires on July 15, as reported by CNBC Awaaz.

This potential stake sale follows a previous reduction in Shobha Gangwal’s stake in the company by over 4% in February. It is worth noting that Rakesh Gangwal resigned from the company’s board in February 2022 and had previously expressed his intention to reduce his stake in the airline over a period of five years.

Neither InterGlobe Aviation nor a representative for the Gangwal family has responded to Reuters’ request for comment regarding this matter.

Rift Between Rakesh Gangwal and Rahul Bhatia

The rift between Rakesh Gangwal and Rahul Bhatia, his co-founder at IndiGo Airlines, became public in early 2020 when Gangwal sought to modify certain rules in the company’s articles of association. This disagreement led to a bitter feud and a subsequent resolution mediated by the market regulator Securities and Exchange Board of India (SEBI). The resolution resulted in a restructuring of the company’s board and the appointment of independent directors.

Following the news of the potential stake sale, shares of InterGlobe Aviation experienced a temporary decline of up to 3.1%. However, it is worth noting that the company’s shares have been performing well this year, with an increase of over 19% year to date.

The sale of a significant stake by the Gangwal family could have implications for the ownership structure and dynamics within InterGlobe Aviation. Investors and industry experts will closely monitor the situation to assess its potential impact on the company’s operations and future strategic decisions.

As of now, the precise details of the stake sale, including the buyer and the final percentage of the stake sold, remain undisclosed. Further developments are expected to unfold in the coming weeks leading up to the unlock period in July.

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