IndiGo Shares Down 2% As Gangwals Plan 3.5% Stake Sale Via Rs 6,800-Crore Block Deal
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Shares of InterGlobe Aviation Ltd (IndiGo) are in the spotlight today as reports suggest the Gangwal family is preparing to offload a 3.5 per cent stake
IndiGo Share Price Today: Shares of InterGlobe Aviation Ltd (IndiGo) saw a selling pressure in the morning session on Tuesday after reports hint the Gangwal family is preparing to offload a 3.5 per cent stake in India's largest airline through block deals. The transaction, pegged at around $800 million (over Rs 6,800 crore), will be executed at a floor price of Rs 5,175 per share, marking a 4.5 per cent discount to the current market rate.
Shares were trading 2.50 per cent lower at Rs 5,283 per equity share on BSE at the time of writing this report. The scrip opened at Rs 5,278 apiece, against the previous day close at Rs 5,418.30 apiece.
The proposed sale could involve Rakesh Gangwal and The Chinkerpoo Family Trust as the primary sellers. As of March 31, 2025, the Gangwal family held a 13.53 per cent stake in IndiGo. This move represents another phase in their gradual exit from the airline, which Rakesh Gangwal co-founded with Rahul Bhatia in 2006. Notably, their stake stood at nearly 37 per cent just three years ago.
Strategic Shift Under New Leadership
IndiGo has seen a strategic overhaul since the appointment of Pieter Elbers as CEO in September 2022. A veteran with more than 30 years at KLM Royal Dutch Airlines, Elbers brought global expertise that has helped IndiGo expand its domestic dominance and strengthen its international presence. Motilal Oswal Financial Services (MOFSL), however, flagged a potential 'key man' risk due to the heavy reliance on his leadership.
The airline now operates at scale—carrying over 10 crore passengers annually and adding one aircraft every week on average. It has expanded its international market share to 30 per cent of Available Seat Kilometers (ASK) in FY25, thanks to strategic airline partnerships. Efforts are also underway to boost brand recognition, enhance customer loyalty, and optimize flight schedules to improve service reliability.
Share Price Performance and Outlook
IndiGo shares have delivered an 18 per cent return in 2025 so far, and 28 per cent over the last six months, driven by strong demand, fare hikes, a softer crude oil price, and a strengthening rupee.
Elara Securities highlighted that IndiGo witnessed consistent growth in passenger traffic in FY25, ranging from 5 per cent YoY in Q1 to 20 per cent in Q4, aided by events such as the Maha Kumbh festival.
Looking ahead, Elara expects IndiGo to maintain its leadership position in FY26, driven by increased capacity. However, Nuvama Institutional Equities flagged near-term challenges, including an imbalance between capacity growth and demand, which could pressure yields. While current valuations appear stretched, Nuvama said the risk-reward is balanced, revising its FY26E Ebitdar down by 3 per cent and setting a new target price of Rs 5,199, with a 'Hold' rating.
Meanwhile, MOFSL remains bullish, reiterating its 'Buy' call with an upgraded target of Rs 6,375, reflecting confidence in IndiGo's long-term fundamentals.
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