The share price of InterGlobe Aviation (IndiGo) dipped 3% today in intraday trading session after reports of Gangwal family co-founder Rakesh Gangwal and his family trust prepare to offload a 3.4% stake in InterGlobe Aviation through a large block deal.
Let’s take a look at the key factors to watch for-
IndiGo stake sale: Rs 6,831 crore block deals to hit market
According to term sheets accessed by PTI, the Gangwal family plans to divest up to 1.32 crore shares in IndiGo on Tuesday, May 27, through block deals across the BSE and NSE.
As per reports, the deal is estimated to be worth around Rs 6,831 crore ($803 million), making it one of the more significant secondary transactions in the aviation sector this year.
Floor price at a discount to market rate
The shares will be sold at a floor price of Rs 5,175 apiece, which represents a discount of about 4.5% from IndiGo’s closing price of Rs 5,420 on May 26, added multiple reports.
The block deal will not involve any fresh issuance of equity, meaning the proceeds go directly to the selling promoters.
Lock-up clause to prevent further quick exits
According to reports, as part of the deal structure, a 150-day lock-up period has been imposed on the selling shareholders and their immediate relatives, barring one condition, that is, they may transfer shares worth at least $300 million to a single investor or a group of investors through a separate negotiated deal, subject to certain pricing and lock-up conditions.
Ongoing exit plan after co-founder fallout
This is not the first time the Gangwal family has sold a stake in IndiGo. The gradual reduction began after a public fallout between Rakesh Gangwal and fellow co-founder Rahul Bhatia in 2022 over alleged governance concerns.
Since then, the Gangwals have trimmed their holding from nearly 37% to 13.5% before this latest round. Past stake sales include a 5.24% divestment in August 2024 for Rs 9,549 crore, and earlier transactions in March 2024, February 2023, and September 2022.
IndiGo share performance
IndiGo’s share price over the last six months, the stock has gained nearly 27%, and it has delivered an 18% return so far in 2025. Even in the last one month, the stock showed a marginal uptick of 1.55%, while its five-day performance saw a mild dip of around 2%. IndiGo has a market capitalisation of Rs 2.10 lakh crore and has touched a 52-week high of Rs 5,665.50, with a 52-week low of Rs 3,780.00.