In the most recent development, InterGlobe Aviation promoter Rakesh Gangwal and his family trust on Tuesday sold a 5.7 per cent stake in the airline for about Rs 11,559 crore ($1.36 billion) through a block deal, a PTI report confirmed citing sources. Following this, the shares of InterGlobe Aviation went down by 2.20 per cent to trade at Rs 5,301 apiece on the NSE in late afternoon trade.
The sources further confirmed that apart from Gangwal, the Chinkerpoo Family Trust, whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware, has also participated in this transaction.
Investment banking firms Goldman Sachs (India) Securities, Morgan Stanley India Company and JP Morgan India are the placement agents for the stake sale, the sources cited by PTI added.
Before this, Gangwal and the family trust together owned about 13.5 per cent in IndiGo.
As per the latest block deal, up to 2.21 crore equity shares were sold at a final price of Rs 5,230.50 per share. This is in accordance with the revised term sheet seen by PTI. The total number of shares has been raised from the initial 13.2 million shares (1.32 crore shares) mentioned in the earlier term sheet. The final price is at a 3.5 per cent discount compared to the closing price of Rs 5,420 per share on Monday.
According to the PTI report, 2.21 crore shares amount to around 5.7 per cent stake in the company, and the offer size, based on the final price, is pegged at nearly $1.36 billion or about Rs 11,559 crore.
As part of the deal structure, the vendors and their immediate family members will be subject to a 150-day lock-up period. However, there is one exception: they are permitted to transfer shares worth at least $300 million to a single investor or investor group through a negotiated transaction, provided that specific pricing and lock-up conditions are met.
In August 2024, Rakesh Gangwal’s family trust had sold a 5.24 per cent stake in the airline for Rs 9,549 crore. Before that, it had sold shares in March. This is part of Gangwal’s decision earlier in February 2022 to trim his shareholding after a feud with co-founder Rahul Bhatia over alleged corporate governance issues.