IndiGo Stake: Rakesh Gangwal Family Trust to Sell 3.4% Stake in IndiGo for ₹6,831 Crore via Block Deal

IndiGo Stake: In a significant development for India’s aviation sector, Rakesh Gangwal, co-founder of IndiGo, along with his family trust, is set to offload a 3.4% stake in InterGlobe Aviation—the parent company of IndiGo—through a block trade valued at approximately ₹6,831 crore. This planned transaction is expected to be executed on Tuesday, according to people familiar with the matter.

The stake sale, part of an ongoing divestment strategy by Rakesh Gangwal and his family, follows a long-standing and very public fallout with IndiGo’s other co-founder, Rahul Bhatia. The latest move will see the Chinkerpoo Family Trust, managed by trustees Shobha Gangwal and JP Morgan Trust Company of Delaware, reducing their stake in the airline, which remains India’s largest carrier by market share.

The shares—about 1.32 crore equity units—will be sold at a floor price of ₹5,175 per share, which is nearly 4.5% lower than IndiGo’s closing price of ₹5,420 on Monday. The block trade will be entirely secondary in nature, meaning there will be no issuance of new equity or dilution of existing shareholding beyond the seller’s part.

Currently, Gangwal and his family trust hold a combined stake of about 13.5% in IndiGo. Post-transaction, their holding is expected to come down significantly, continuing the downward trend that began in 2022. The sale will be conducted on both BSE and NSE in multiple tranches.

Three global investment banking giants—Goldman Sachs (India) Securities Pvt Ltd, Morgan Stanley India Company, and J.P. Morgan India—have been roped in as placement agents for this deal.

A 150-day lock-up period will follow the transaction, restricting further sales by the sellers and their immediate relatives, except under one condition. They will be permitted to transfer shares worth at least USD 300 million to a single investor or group through a negotiated deal, provided certain pricing and lock-up clauses are respected.

This isn’t the first time the Gangwal family has trimmed its holding in the airline. In August 2024, they sold a 5.24% stake worth ₹9,549 crore, following another offload in March. Earlier, in February 2023, Shobha Gangwal sold a 4% stake for ₹2,944 crore, and in August the same year, she let go of a 2.9% stake for over ₹2,800 crore. In September 2022, a 2.74% stake was divested for ₹2,005 crore.

Rakesh Gangwal had announced in February 2022 his intent to gradually exit the company following governance-related disputes with Bhatia, which deeply fractured one of the most successful partnerships in India’s aviation history. Since then, the family has methodically reduced their equity interest, signaling a steady disengagement from the airline they helped build into a market leader.