IndiGo Promoter Rakesh Gangwal to Sell $803 Million Stake via Block Deal

Rakesh Gangwal, co-founder and promoter of IndiGo, is set to divest a significant portion of his holdings in InterGlobe Aviation Ltd. Through a block deal scheduled for May 27, Gangwal and the Chinkerpoo Family Trust will sell up to 13.2 million shares, representing a 3.4% stake in the airline. The shares will be offered at ₹5,175 each — a 4.5% discount from the May 26 closing price of ₹5,418.3 on the BSE.

The total deal is valued at approximately $803 million. Goldman Sachs (India) Securities, Morgan Stanley India, and J.P. Morgan India are managing the transaction. While JP Morgan declined to comment, queries sent to Gangwal and the other bankers remained unanswered at the time of publishing.

As of March 30, Gangwal directly held 5.3% in InterGlobe Aviation, while the Chinkerpoo Family Trust owned 8.23%. This marks a continued reduction in Gangwal’s stake since his settlement with co-founder Rahul Bhatia. Previously, he sold a 5.83% stake in August 2024 and another 5.83% in April 2024.

InterGlobe Aviation, which operates IndiGo — India’s largest airline — has seen its stock rise 18% so far this year. Despite the announcement, shares closed 1.76% lower at ₹5,424 on the NSE.

Strong Business Outlook

IndiGo recently reported a 62% increase in Q4 profits, driven by strong demand during the Mahakumbh period. According to a report by Axis Securities, IndiGo holds over 60% market share domestically and is well-positioned with access to key airport slots across 89 destinations.

Looking ahead, the airline is preparing to expand its global footprint. It has placed orders for Airbus A321XLR aircraft, expected to be delivered by 2027. These jets will enable the carrier to serve long-haul routes, especially to Europe.

Additionally, IndiGo has begun damp-leasing six Boeing 737 widebody aircraft to support international growth. One of these aircraft has already been deployed on the Delhi–Bangkok route.

The company also sees significant potential in air cargo. With India currently having a single-digit share in global air cargo, IndiGo’s management views this as a key growth driver moving forward.