IndiGo Airlines co-founder Rakesh Gangwal and his wife Shobha Gangwal sold 2.74 per cent stake in the airline brand’s parent company InterGlobe Aviation for Rs 2,005 crore this week. The Gangwals sold the stakes in open market transactions, according to the bulk deal data available with the National Stock Exchange (NSE). Earlier in February 2022, Gangwal had resigned from the board of directors of the company, and had said that he will gradually reduce his equity stake in the firm over the coming five years. Details on the buyers were not provided by the exchange.
Rakesh Gangwal and his wife sold a total of 1.05 crore shares, amounting to 2.74 per cent stake in the company. The shares were sold in the range of Rs 1,886.471,901.34 apiece, valuing the transaction at Rs 2,004.77 crore. The Gangwal family owned a total of 36.61 per cent stake in the low-cost carrier, at the end of the June quarter, where Gangwal and his wife held 14.6 per cent and 8.39 per cent stakes, respectively. The rest is held by Chinkerpoo Family Trust, according to shareholding data. IndiGo airlines was co-founded by Rakesh Gangwal and Rahul Bhatia as a low-cost carrier. Rahul Bhatia and his related entities own nearly 38 per cent in the parent firm InterGlobe Aviation.
After Gangwal’s resignation, Bhatia was appointed as the managing director for five years. The co-founders were engaged in a feud after Gangwal wrote a letter to the Securities and Exchange Board of India (Sebi) seeking its intervention to address corporate governance issues, in July 2019. This closed in December 2021 when the shareholders voted in favour of a resolution that removed restrictions on share transfer to a third party. Gangwal had also said that he had little power when it came to running the affairs of the airline. According to agreements between IndiGo and Bhatia’s InterGlobe Enterprises, Gangwal had the power to name only one director to the airline’s board while Bhatia could name five. Bhatia also had the power to appoint the managing director, CEO and president.
The share of InterGlobe Aviation rose nearly 1 per cent to hit an intraday high of Rs 1959 on Friday morning; however a few minutes later, the share price declined and the scrip was quoting in red at around Rs 1940 per share.