Gangwal family sells 4% stake in Indigo; stock falls 4% in early trading

IndiGo share price: In one of the major developments for InterGlobe Aviation, the parent company of airline company Indigo, co-promoter Rakesh Gangwal and his family sold a 4 per cent stake, or 1.56 crore shares, totaling Rs 3,730 crore in the company in block deals on Wednesday. After selling the 4 per cent stake, Gangwal and his family now hold a 25.7 per cent stake in Indigo.

The deal is possible at Rs 2,400 per share after a discount of 6 per cent. 

Why did the Gangwal family sell its stake in Indigo? Rahul Bhatia and Rakesh Gangwal started InterGlobe Aviation in 2006.

The differences between the two founders grew in 2019.

Gangwal raised concerns about corporate governance and related-party transactions.

However, the turning point came in December 2021, when both promoters reconciled in an extraordinary general meeting.

As a result, restrictions were removed from promoter share transfers, and there were changes in articles of association.

On February 18, 2022, Gangwal announced his resignation from the board of Indigo.

Gangwal said he would sell the family stake in the company in the upcoming five years.

He didn't rule out the possibility of working as a board member again in the future.  

The company's stock was trading 3.91 per cent down at Rs 2,448.60 in early trading.

Gangwal family's stake in Indigo over the years