IndiGo block deal: Rahul Bhatia promoter entity plans to sell around 2% stake worth $394 mn

Indigo Airlines

Rahul Bhatia's promoter entity Interglobe Enterprises Private Ltd plans to sell stake worth $394 million in Indigo Airlines parent firm Interglobe Aviation via block deal, multiple persons in the know told Moneycontrol on the condition of anonymity.

"The deal has been launched and Bhatia is looking to offload around 2 percent stake. This is the first time in many years that he is looking to unlock value and pocket some returns," said of the persons above.

Interglobe Enterprises Private Ltd has a 37.75 percent stake in Interglobe Aviation currently, according to exchange filings.

The firm's stock has risen by 55.66 percent in the last six months.

A second person said the floor price at Rs 4266/share is at a 6.5 percent discount to InterGlobe Aviation's closing price of Rs 4562.55/ share with Citi acting as the i-banker on the deal.

Importantly, there is a lock up period of 365 days on the seller according to deal terms, a third person said.

Over and above Interglobe Aviation, Rahul Bhatia also has business interests in the hotels and artificial intelligence segment which may require additional capital, the third person elaborated.

In April, Bhatia launched AI company AionOS with former Tech Mahindra MD CP Gurunani.

Moneycontrol has reviewed a copy of the termsheet of the proposed block deal.

Interglobe Aviation and Citi couldn't be reached for an immediate comment. Moneycontrol has sent an email query and will update this article as soon as it hears from the firms.