The share price of InterGlobe Aviation slipped more than 4% in early trade today. This decline in the share price of the parent of budget airline IndiGo comes after reports suggested that co-founder Rakesh Gangwal and his family trust were looking to sell up to a 3.1% stake through block deals.
The proposed sale, pegged at nearly Rs 7,028 crore, has once again put the budget carrier in the limelight. Here are five things investors need to know about the development and what it could mean for the stock.
Rakesh Gangwal trims stake further
The Gangwal family has been reducing its holding in IndiGo since 2022, when a fallout with co-founder Rahul Bhatia pushed Rakesh Gangwal to step down from the board.
As per reports, the latest transaction involves 1.21 crore shares, or about 3.1% of the company, priced at Rs 5,808 per share, a discount of nearly 4% to the previous NSE closing price. After this sale, the family’s stake will fall from 7.81% to around 4.71%.
A series of large stake sales
This is not the first time the Gangwal family has hit the sell button.
Between 2023 and mid-2025, the company sold over 9% stake in multiple tranches. Through this, they raised more than Rs 12,900 crore this year alone.
Furthermore, in May 2025, a 3.4% stake sale fetched Rs 6,831 crore, while in August 2024, the family disposed of 5.24% for Rs 9,549 crore.
The deal mechanics
As per reports, the latest transaction shows Goldman Sachs, Morgan Stanley, and JPMorgan as the brokers. It also specifies a 150-day lock-up period, restricting further sales by the Gangwal family.
However, one negotiated transfer worth at least $300 million is allowed under the deal, provided it meets the floor price and complies with the lock-up.
IndiGo’s Q1FY26 performance
For the first quarter of FY26, the IndiGo reported a net profit of Rs 2,176 crore, down 20% from last year. Revenues, however, rose nearly 5% year-on-year to Rs 20,496 crore. Passenger load factor stood at 84.2% and on-time performance at 87.1%, keeping the airline ahead of industry peers despite a challenging operating environment.
IndiGo share performance
In the last five trading sessions, IndiGo’s share price has declined by around 5%. On a six-month basis, the stock has delivered a 29% return, while so far in 2025, it has gained 26%.
IndiGo currently operates a fleet of 439 aircraft, with about 50 grounded, but plans to induct another 50 planes in the next fiscal year. The airline expects double-digit growth in Available Seat Kilometres (ASK) in FY26.