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Rakesh Gangwal likely to sell 3.4% stake in IndiGo for ₹6,800 crore
IndiGo Cofounder Rakesh Gangwal may divest about 3.4 per cent stake in the airline for ₹6,831 crore via block deals. This is part of Gangwal's long-term plan to gradually reduce his stake in India's largest airline, which he cofounded with Rahul Bhatia in August 2006.
Sources stated that the floor price for the transaction has been set at ₹5,175 per share, nearly 4.6 per cent below the last closing price of ₹5,424. Currently, Gangwal and his related entities hold a 13.53 per cent in IndiGo.
Investment banking firms Goldman Sachs (India) Securities, Morgan Stanley India Company and J P Morgan India are the placement agents for the stake sale
In August last year, Gangwal and his family trust sold a 5.83 per cent stake for about ₹10,500 crore. In March 2024, he offloaded another 6 per cent for ₹6,786 crore. In 2023, his wife Shobha Gangwal sold 3 per cent in August for ₹2,802 crore, and in February, the family had sold a 4 per cent stake for ₹2,900 crore.
Gangwal had resigned from IndiGo's board on February 18, 2022, declaring he would gradually exit his holding over five years.
His decision came in the wake of a long-running feud with co-promoter Rahul Bhatia, which lasted over two years until December 2021. The dispute became public in July 2019 when Gangwal wrote to market regulator Sebi alleging corporate governance lapses — claims the Bhatia group denied. Both promoters took the matter to the London Court of International Arbitration, which gave its ruling in September 2021.
Following this, IndiGo held an extraordinary general meeting on December 30, 2021, where shareholders approved the removal of a clause in the Articles of Association that had granted the promoters the right of first refusal on share sales. This paved the way for Gangwal to begin divesting his stake.
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