InterGlobe Aviation promoter and co-founder of IndiGo, Rakesh Gangwal and his family trust are likely to divest another 3.1 per cent stake in Indigo on Thursday, according to a term sheet.
The latest sale, purported to be worth ₹7,027.7 crore, follows the Gangwal family’s decision to sell equity in the country’s largest airliner in a phased manner over the next five years following a bitter fallout with co-founder Rahul Bhatia.
Apart from Rakesh Gangwal, the Chinkerpoo Family Trust (whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware) will also be collectively divesting up to 3.1 per cent holding in IndiGo, according to the term sheet.
The sale will comprise up to 12.1 million shares (1.21 crore shares) that amount to approximately 3.1 per cent stake at a floor price of ₹5,808 per share. This is a nearly 4 per cent discount to IndiGo's last closing price of ₹6,050 on Tuesday on the NSE, as per the term sheet.
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The brokers to the proposed transaction would be investment firms Goldman Sachs (India) Securities Pvt Ltd, Morgan Stanley India Company and JP Morgan India, and the transaction will be executed through one or more share sales on the NSE and BSE.
The sale is entirely secondary in nature, meaning no new shares will be issued, and the proceeds will go to the selling shareholders.
After the completion of this transaction, Rakesh Gangwal and his family trust's holding in IndiGo will come down to 4.71 per cent from 7.81 per cent.
Post the sale, the vendors and their immediate relatives will be restricted from selling further shares during a 150-day lock-up period, although the term sheet allows for one negotiated transfer of shares worth at least USD 300 million to a single investor or group, provided such sale is done at or above the offer price and the buyer agrees to adhere to the remaining lock-up period.
Amid differences with co-founder Rahul Bhatia over alleged corporate governance issues, Gangwal resigned from the board of directors of InterGlobe Aviation in February, 2022, and said that he would gradually reduce his equity stake in the airline over the next five years.
In September of 2022, Gangwal and his wife, Shobha Gangwal, sold a 2.74 per cent shareholding for ₹2,005 crore.
In February 2023, Shobha divested another 4 per cent stake in the company for ₹2,944 crore, and later in August, she sold a nearly 2.9 per cent stake for a little over ₹2,800 crore.
The Gangwal family trust sold shares in March, 2024, and in August, 2024, it sold a 5.24 per cent stake in the airline for ₹9,549 crore.
In May this year, Gangwal and his family trust trimmed their holding further by divesting a 5.72 per cent stake in the airline for ₹11,564 crore in InterGlobe Aviation.
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