IndiGo stock slips 4.5% as 18 million shares exchange hands via block deals

• Co-promoter Rakesh Gangwal’s wife, Shobha Gangwal is the likely seller in the block deal executed on Thursday, as per media reports.
• Last September, Rakesh Gangwal was reportedly looking to sell 2.8% stake in the low cost airline for approximately $250 million.
• As of December 2022, Shobha Gangwal owns 7.04% stake in the company while co-founder Rakesh Gangwal holds 13.24% stake.

Shares of IndiGo tumbled over 4.5% on Thursday after several large block deals were executed during the day, with 18 million shares exchanging hands. The stock closed at ₹1,897 per share.

Co-promoter Rakesh Gangwal’s wife, Shobha Gangwal is known to have sold 4% of her stake in the company via block deals, according to media reports.

As per CNBC-TV18, the floor price for the block deal was set at ₹1,875 per share and Goldman Sachs was appointed as the broker.

Last September, Rakesh Gangwal was reportedly looking to sell 2.8% stake in the low cost airline for approximately $250 million.

As of December 2022, Shobha Gangwal held 7.04% stake in the company while the airline’s co-founder Rakesh Gangwal held 13.24% stake. The promoter group currently owns a majority 71.92% stake in the airline.
Kapil Bhatia and Rahul Bhatia hold 0.01% stake each while Asha Mukherjee held 0.32% in the airline. Rahul Bhatia is the promoter and managing director of the airline.

The market capitalization of the aviation company stood at ₹73,159 crore. Shares of the company have fallen over 9% in the last one month.

Earlier this month, Indigo reported its highest ever quarterly revenue of ₹15,410 crore in Q3, on the back of strong demand during the peak travel season. Net profit of the airline rose to ₹1,422 crore as compared to ₹129 crore last year. Last quarter, it had posted a net loss of ₹1,583 crore.

“Third quarter performance was strong both operationally and financially in the backdrop of robust demand for air travel. The wide range of initiatives that were set in motion across the organization have started to yield results,” said Pieter Elbers, CEO of Indigo.

Total expenses for the quarter ended December 2022 were ₹13,986 crore, an increase of 49.6% over the same quarter last year.

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