Rakesh Gangwal will likely sell a stake of up to 2.8% stake in InterGlobe Aviation, operator of IndiGo Airlines (6E, Delhi International), the airline he co-founded in 2005 and now India’s biggest by fleet size and market share, local media reported.
The Indian-American billionaire is seeking to sell the shareholding for about INR18.5 billion rupees (USD232 million) through a block deal, sources told India’s Business Standard newspaper, a sale that is being brokered by three investment banks. Gangwal and other family members currently own 36.61% in InterGlobe Aviation.
Gangwal resigned from the board of the parent company in February with plans to gradually downsize his stake over the next five years, as part of a solution to end a long-running feud with fellow co-founder and managing director Rahul Bhatia.
The clash between the two erupted in July 2019 when Gangwal alleged corporate governance lapses at the company. It culminated in late December 2021 when shareholders approved changes to the company’s articles of association, including erasing a rule restricting sale or transfer of shares to a third party.
Of the combined 36.61% shareholding, Gangwal himself holds 14.65%, his wife Shobha 8.39%, and the Gangwal-run Chinkerpoo Family Trust 13.57%, while Bhatia and his family hold 38.17%.
