The parent company of low-cost airline IndiGo, InterGlobe Aviation Ltd., saw a nearly 3 per cent decline in share price on Thursday, August 29, following the completion of a sizable block transaction on the stock counter.
Exchange data revealed that at a floor price of Rs 4,760 a share, about 2.3 crore shares of InterGlobe Aviation, amounting to 6 per cent of the company, changed hands. This resulted in a deal value of Rs 11,000 crore overall.
The stock opened at Rs 4,731.10 per share on National Stock Exchange After muted opening, the stock touched a day-low of Rs 4,731.10 per share on the Indian stock exchanges.
Indigo Airlines parent Interglobe Aviation has touched a 52-week high level of Rs 4,943.80 per share and an all-time high level at the same price as the 52-week high level on the National Stock Exchanges.
The stock was trading around Rs 4761.90 per share with a decline of Rs 93.30 on the National Stock Exchange.
Buyers and seller in block deal
The deal's floor price was 2 per cent less than IndiGo's Wednesday closing NSE price of Rs 4,859.85 per share. As a result, IndiGo's stock fell 2.8 per cent in the first trading session on Thursday, reaching an intraday low of Rs 4,725 per share.
The buyers and sellers in the transaction were not immediately disclosed, but media reports indicated that Rakesh Gangwal, one of IndiGo's co-founders, intended to further reduce his ownership in the airline.
Gangwal reportedly intended to sell IndiGo shares for Rs 10,300 crore in order to leave the airline on his own.
Promotor holding declining
Gangwal and his family owned 36.61 per cent of IndiGo prior to his resignation in 2022, while Rahul Bhatia, another co-founder, and his family owned close to 37.8 per cent.
According to reports, Gangwal and Bhatia had a falling out in 2019 over the airline's operations, and as a result, Gangwal began to reduce his ownership stake in the business.
In September 2022, Gangwal's family sold 2.8 per cent of the airline for Rs 2,000 crore, marking the first sale of the stake. Subsequently, in February 2023, the family sold an extra 4 per cent of the company for Rs 2,900 crore in another stake sale.
A few months later, in August 2023, Shobha Gangwal, the wife of Rakesh Gangwal, sold her nearly 3 per cent share in IndiGo for almost Rs 2,802 crore.
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