Gangwal to begin sale of 2.8% IndiGo stake for $250 million

Gangwal served as a non-executive and non-independent director on the board. The Gangwal family and their trust will sell a 2.8 per cent stake through a block deal for $250 million or Rs 2,000 crore in InterGlobe Aviation on Thursday.

Interglobe Aviation, Indigo, Rakesh Gangwal, Business news, Indian express business news, Indian express, Indian express news, Current Affairs

Rahul Bhatia (left) and Rakesh Gangwal. File

Seven months after stepping down down from the board of InterGlobe Aviation — the parent of budget airline IndiGo — and stating he would sell his entire holding in the carrier over a period of five years, co-founder Rakesh Gangwal and his family will start the process Thursday.

Gangwal served as a non-executive and non-independent director on the board. The Gangwal family and their trust will sell a 2.8 per cent stake through a block deal for $250 million or Rs 2,000 crore in InterGlobe Aviation on Thursday.

The deal is for 10.8 million shares and the price has been fixed at Rs 1,850 apiece, a 6.75 per cent discount to the BSE closing on Wednesday. The Gangwal family and their trust cumulatively hold a 36.61 per cent stake in InterGlobe Aviation. Earlier this year, Gangwal appointed Citigroup, Goldman Sachs, Morgan Stanley and JP Morgan to manage the sale process.

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This stake sale became possible after a modification in the company’s Articles of Association, which allowed sale of shares by the promoters without seeking approval from the other.

Rahul Bhatia, the other co-founder of the airline, and other entities — including InterGlobe Enterprises — hold 38.17 per cent in the listed entity.

Gangwal and Bhatia have been at loggerheads over the past few years. In 2019, Gangwal accused Bhatia of indulging in ‘questionable related-party transactions’ between InterGlobe Aviation and Bhatia group entities. Bhatia denied and countered the allegations.

Meanwhile, on September 6, Dutch national and aviation veteran Pieter Elbers took charge as the CEO of IndiGo with immediate effect. Elbers served as the president and CEO of KLM Royal Dutch Airlines since 2014. FE

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