Gangwal to trim IndiGo stake

Planned $801 million stake sale would take the airline co-founder's holding to less than 5%

- Dipali Banka

IndiGo co-founder and promoter Rakesh Gangwal plans to sell shares worth $801 million in the country's largest airline, according to a term sheet seen by Mint. Goldman Sachs (India) Securities, Morgan Stanley India and J.P. Morgan India are arranging the trade.

Under the updated terms, Gangwal and his Chinkerpoo Family Trust will sell up to 12.1 million shares—or about 3.1%—in InterGlobe Aviation Ltd, which runs IndiGo. The offer price of ₹5,808 reflects a nearly 4% discount to the stock's closing price of ₹6,050 on Tuesday on the NSE.

After this sale, Gangwal would own 4.71% in IndiGo while his co-promoter and managing director of the airline, Rahul Bhatia, would hold 35.73%.

At December 2021-end, Gangwal held 36.6%, and Bhatia owned 37.8% in InterGlobe Aviation.