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IndiGo Shares Fall Nearly 5% After Gangwal Family’s 3.1% Stake Sale via Block Deal
IndiGo shares fell 5% after the Gangwal family sold a 3.1% stake worth ₹7,000 crore via block deal, reducing their holding to under 5%.
IndiGo shares slipped nearly 5% as the Gangwal family sold a 3.1% stake worth over ₹7,000 crore through a major block deal.
After the Rakesh Gangwal family, which includes the Chinkerpoo Family Trust, sold about 1.2 crore shares—or 3.13% equity—through a block deal, shares of InterGlobe Aviation, the parent company of low-cost airline IndiGo, fell by almost 5% to ₹5,754 in early trading on Thursday.
Important Aspects of the Block Deal
- With estimates ranging from ₹7,020 crore to ₹7,084 crore, the sale was valued at over ₹7,000 crore.
- The floor price, which was lower than current market prices, was set at ₹5,808 per share.
- The transaction was made possible by international investment banks like JPMorgan, Morgan Stanley, and Goldman Sachs.
Background: Continuous Divestment Plan
- The deal is a component of a phased exit strategy that started in 2022 when Gangwal left the board due to disagreements with co-founder Rahul Bhatia.
- The Gangwal family raised over ₹12,900 crore in 2025 alone by selling over 9% of their stake.
- Their total stake in IndiGo has decreased from approximately 7.8% to nearly 4.8% following this sale.
The Business Prospects of IndiGo
- IndiGo has demonstrated operational resilience in spite of the stock market setback:
- Revenue increased 4.7% in the first quarter of FY26, but net profit was down 20% year over year at ₹2,176 crore.
- 84.2% is the passenger load factor.
- Performance on Time: 87.1%
- Growth Goals: IndiGo intends to add roughly 50 new aircraft in FY26 and is aiming for early double-digit ASK growth. It wants international routes to account for 40% of its capacity (ASK) by FY30.
