IndiGo Block Deal: Co-founder Rakesh Gangwal sells 5.8% stake worth Rs 11,928 crore

IndiGo shares have risen almost 20 percent since the start of the year.

Shares of Interglobe Aviation, the operator of IndiGo Airlines, slipped over 3 percent after co-founder Rakesh Gangwal offloaded 2.26 crore shares or 5.8 percent of his stake through a block deal that fetched as much as Rs 11,928 crore, CNBC TV-18 reported, citing people familiar with the matter. The deal marks another step in Gangwal’s ongoing effort to gradually exit the airline’s holding company.

The floor price for the transaction has been pegged at Rs 5,260 per share, representing a discount of around 3 percent to the last closing price. Top global investment banks — Goldman Sachs, Morgan Stanley, and JPMorgan — have been roped in to handle the sale, the report stated.

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Gangwal had resigned from the board of InterGlobe Aviation in 2022, stating at the time that he intended to reduce his stake in a phased manner. Despite stepping back from the boardroom, he remains one of IndiGo’s largest shareholders.

The low-cost carrier reported a profit of Rs 3,067.5 crore for the quarter ended March 31, 2025, flying into its second straight quarter in green, as strong domestic travel demand continued across India. The biggest budget airline by market share had posted a net profit of Rs 1894.8 crore in the year-ago period.

The company's revenue from operations grew 24 percent to Rs 22,151.9 crore from Rs 17,825.3 crore last fiscal, just short of estimates of Rs 22,500 crore. The carrier's EBITDAR (earnings before interest, tax, depreciation, amortisation and rent) jumped to Rs 6,948.2 crore as against Rs 4,412.3 crore a year back, while its margin increased to 31.4 percent from 24.8 percent.

At about 9:20 am, shares of the company were trading at Rs 5,294, lower by 2.4 percent from the last close. IndiGo shares have risen almost 20 percent since the start of the year.

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