Seven months after stepping down down from the InterGlobe Aviation board and stating that he would sell his entire holding in IndiGo over a period of five years, co-founder Rakesh Gangwal and his family have started the process. Gangwal served as a non-executive and non-independent director on the board.
The Gangwal family and their trust will sell a 2.8% stake through a block deal for $250 million or Rs 2,000 crore in InterGlobe Aviation on Thursday. The deal is for 10.8 million shares and the sale price has been fixed at Rs 1,850, which is a 6.75% discount to the BSE closing on Wednesday. The Gangwal family and their trust cumulatively hold a 36.61% stake in InterGlobe Aviation. Earlier in the year, Gangwal appointed Citigroup, Goldman Sachs, Morgan Stanley and JP Morgan to manage the sale process.
This stake sale became possible after a modification in the company’s Articles of Association, which allowed sale of shares by the promoters without seeking approval from the other.
Rahul Bhatia, the other co-founder of the airline, and other entities, including InterGlobe Enterprises, hold 38.17% in the listed entity.
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Gangwal and Bhatia have been at loggerheads over the past few years. In 2019, Gangwal accused Bhatia of indulging in ‘questionable related-party transactions’ between InterGlobe Aviation and Bhatia group entities. Bhatia denied and countered the allegations.
Meanwhile, on September 6, Dutch national and aviation veteran Pieter Elbers took charge as the CEO of IndiGo with immediate effect. Elbers served as the president and CEO of KLM Royal Dutch Airlines since 2014.