IndiGo co-founder Rakesh Gangwal executed a strategic move on Monday by selling a 5.8% stake in InterGlobe Aviation through a bulk deal, as per data reported by BSE. The transaction, marked by Morgan Stanley’s acquisition of 2.1 million shares in IndiGo.
According to a corporate announcement from Gangwal’s firm, the transaction resulted in a substantial Rs 6,785 crore influx, with the sale of 2,25,00,000 shares at an average price of Rs 3,016 per share. Morgan Stanley Asia Singapore Pte entered the scene by acquiring 21,00,000 shares of the aviation company, constituting a 0.5% stake, at a total cost of Rs 633 crore.
The sale unfolded in three tranches, with the per-scrip price ranging from Rs 3,015.10 to Rs 3,016.36.
On Monday, Gangwal successfully sold 22.5 million shares of InterGlobe Aviation, valued at Rs 6,785.7 crore, with an average price of Rs 3,015.88 per share. Post-transaction, Gangwal’s stake in the company now stands at 6%, contributing to a reduction in the promoter group’s holding to 57.3% in InterGlobe Aviation.
Earlier reports on March 7 hinted at Gangwal’s plans to sell up to 12.75 million shares, equivalent to 3.3% of his stake in InterGlobe Aviation, through a block deal. In parallel, Morgan Stanley Asia acquired 2.1 million shares of InterGlobe Aviation at Rs 3,015.10 apiece.
The block deal was skillfully managed by investment banking giants Morgan Stanley, JP Morgan, and Goldman Sachs on behalf of Gangwal. This strategic move aligns with Gangwal’s earlier divestments, including a 2.8% stake worth Rs 2,000 crore in September 2022 and a subsequent 4% stake divestment for Rs 2,900 crore in February last year.
IndiGo’s financials and share performance
In the December quarter, IndiGo recorded a consolidated net profit of Rs 2,998 crore, marking a remarkable 111% increase from the Rs 1,423 crore posted in the corresponding quarter of the previous year. The revenue from operations for the same reporting period witnessed a substantial 30% year-on-year (YoY) surge, reaching Rs 19,452 crore.
IndiGo efficiently transported 27.5 million passengers in Q3, reflecting a notable 23% YoY growth. Additionally, the load factor during the quarter exhibited improvement, reaching 85.8%.
In terms of stock performance, Interglobe Aviation shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 5.62% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 29.82%, indicating a strong upward trend.
Year-to-date, Interglobe Aviation shares have surged by 8.78%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 74.25% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.