Shares of InterGlobe Aviation fell 4 percent in trade after a block deal involving 83.7 lakh shares, representing a 2.2 percent stake in the company took place on the exchanges on June 11. The block deal, executed at an average price of Rs 4,406 apiece, was worth a total of Rs 3,689 crore.
Moneycontrol could not immediately identify the parties involved in the transaction. However, we did report on June 10 that the holding company of Rahul Bhatia family, InterGlobe Enterprises Private was looking to pare around 2 percent stake worth $394 million in the low-cost carrier via block deal.
"This is the first time in many years that he is looking to unlock value and pocket some returns," a source told Moneycontrol.
Rahul Bhatia and his family members are named as promoters of InterGlobe Aviation, and held a 37.75 percent stake in the low-cost carrier through their holding company InterGlobe Enterprises.
It's also worth noting that the transaction will also tip off a lock-in period of 365 days before the Bhatia family could hive off further stake.
At 09.24 am, was trading at Rs 4,445 on the NSE, slightly off its day's low of Rs 4,388.
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Nuvama Alternative & Quantitative Research also estimates that after this block deal, the float in the low-cost carrier will rise directly to 49 percent, surpassing MSCI's assumed 45 percent. "This float increase is expected to lead to an inflow of $53 million, equating to 1 million shares," the Nuvama report estimated.
"Additionally, a minor weight adjustment would also occur in the stock's weightage in the FTSE index, valued at around $15 million," according to Nuvama Alternative.
Even after factoring these in, Abhilash Pagaria, Head - Nuvama Alternative & Quantitative Research, doesn't see a meaningful price impact on the stock on the back of passive flows. However, he still remains bullish on IndiGo's fundamental and quantitative momentum, anticipating the stock to continue to perform well in the near term.
InterGlobe Aviation posted a record-breaking profit of Rs 8,172 crore for fiscal year 2024. In the fourth quarter of FY24 alone, the company clocked in a net profit of Rs 1,894 crore, up from Rs 919.2 crore in the year-ago period. This also marked the company's sixth consecutive profitable quarter.
The airline's revenue also grew 26 percent on year to Rs 17,825.3 crore in Q4 FY24.
Buoyed by the airline's solid financial performance, shares of InterGlobe Aviation have also surged 54 percent year-to-date.
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