IndiGo Co-Founder Rakesh Gangwal’s Family Trust Sells Stake Worth Rs 2,933 Crore

IndiGo promoter Rakesh Gangwal’s family trust on Thursday sold a 1.3 per cent stake in the country’s largest airline for Rs 2,933 crore through open market transactions, cumulatively offloading shares worth Rs 14,497 crore so far this year.

Background of the Stake Sale

With the latest sale, the cumulative divestment by Rakesh Gangwal, along with his wife Shobha Gangwal and their family trust — the Chinkerpoo Family Trust — stood at Rs 39,532.79 crore, translating to around $4.51 billion.

Since 2022, Gangwals and their family trust have offloaded a 28.32% stake in IndiGo, according to an analysis by PTI.

Impact on InterGlobe Aviation

InterGlobe Aviation, which commands substantial valuation in the stock market, operates IndiGo, which accounts for over 65 per cent of the total domestic air traffic.

Following a bitter fallout with co-promoter and co-founder Rahul Bhatia, Gangwal, in 2022, announced that he will gradually sell stake in the airline in a phased manner.

Bulk Deal Details

According to the bulk deal data available on the NSE on Thursday, the Chinkerpoo Family Trust offloaded a total of 50.40 lakh shares in two tranches representing a 1.3% stake in Gurugram-based InterGlobe Aviation.

The shares were disposed of in the price range of Rs 5,814.71-5,825.72 apiece, taking the combined deal value to Rs 2,933.39 crore.

Change in Shareholding

After the stake sale in IndiGo, the holding of the Chinkerpoo Family Trust, whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware, has come down to 1.78% from 3.08%.

Also, the combined shareholding of Gangwals and Family Trust in IndiGo has declined to 6.51% from 7.81%.

Past Stake Sales

In May this year, Rakesh Gangwal and his family trust trimmed their holding by divesting a 5.72% stake in the airline for Rs 11,564 crore.

In August 2024, Gangwal’s family trust sold a 5.24 per cent stake in the airline for Rs 9,549 crore. Before that, it had sold shares in March.

The share sale is part of Gangwal’s decision in February 2022 to trim his shareholding after a bitter feud with co-founder Rahul Bhatia over alleged corporate governance issues.

Internal Linking Opportunities

For more information on Indian stock market news and IndiGo share price, please visit our website.

Conclusion

The sale of stake by Rakesh Gangwal’s family trust in IndiGo is a significant development in the Indian aviation sector. The move is expected to have a considerable impact on the stock market and the airline’s operations.