The promoter of IndiGo Airlines (6E, Delhi International) is tipped to soon sell another large share tranche, with a 150-day share sale embargo expiring on February 13, 2024. India's CNBC outlet reports that Rakesh Gangwal, IndiGo's founder, is looking to cash in on a strong stock price, and roadshows to gauge investor interest are underway.
Gangwal, his immediate family members, and entities controlled by them now own 25.2% of InterGlobe Aviation, trading as IndiGo. However, the family has systemically sold down its holdings in recent years. In September 2022, the family sold a 2.7% stake at INR1,850 rupee (USD22.26) per share. In February 2023, the family sold a 3.7% stake at INR1,887 (USD22.71) per share, and in August 2023, the family sold a 5.8% stake at INR2,400 (USD28.88) per share. On February 13, 2024, InterGlobe shares closed at INR3,047 (USD36.67).
Despite ongoing capacity challenges caused by Pratt & Whitney engine issues and other supply chain challenges, IndiGo has delivered InterGlobe five consecutive quarterly profits. Last week, the LCC posted an after-tax profit of INR29.981 billion (USD360.8 million) for the December 2023 quarter. IndiGo CEO Pieter Elbers says IndiGo is eyeing 20% growth this financial year.
In early 2022, Gangwal resigned from InterGlobe's board and said he and his family would sell their 37% plus stake over a five year period. InterGlobe's other big shareholder is InterGlobe Enterprises (controlled by the Bhatia Family), which has a 38.1% shareholding.
