IndiGo shares settle over 5% lower after block deals; check details

The stock slipped after a CNBC-TV18 report said that 1.2 lakh shares, or 3.13% equity worth ₹7,084.6 crore, changed hands at an average price of ₹5,830 per share via block deals.

Earlier, news reports said that promoter Rakesh Gangwal and his family trust were likely to divest up to a 3.1% stake for ₹7,027.7 crore in the company today.

Gangwal, the co-founder of IndiGo, has been selling his equity in a phased manner, following a bitter fallout with co-founder Rahul Bhatia.

Apart from Rakesh Gangwal, the Chinkerpoo Family Trust, whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware, will be collectively divesting up to a 3.1% holding in IndiGo, the country's largest carrier, PTI had reported.

Investment firms Goldman Sachs (India) Securities Pvt Ltd, Morgan Stanley India Company and JP Morgan India were reported to be the brokers to the proposed transaction, they added.

As of June 2025, Gangwal and the family trust owned a 7.81% holding in IndiGo, as per the shareholding data on the exchanges.

Under the proposed transaction, the sale will comprise up to 12.1 million shares (1.21 crore shares) at a floor price of ₹5,808 per share, nearly a 4% discount to IndiGo's last closing price of ₹6,050 on Tuesday on the NSE, as per the term sheet.

According to the term sheet, 1.21 crore equity shares will amount to around 3.1% stake in the company, and the offer size based on the floor price is pegged at around $801 million, or about ₹7,027.7 crore.

The proposed transaction will be executed through one or more share sales on the NSE and BSE. The sale is entirely secondary in nature, meaning no new shares will be issued, and the proceeds will go to the selling shareholders.

After the completion of the transaction, Rakesh Gangwal and his family trust's holding in IndiGo will come down to 4.71% from 7.81%.

As part of the deal structure, the vendors and their immediate relatives will be subject to a 150-day lock-up period, restricting them from selling further shares during that time.

However, the term sheet allows for one negotiated transfer of shares worth at least $300 million to a single investor or group, provided such sale is done at or above the offer price and the buyer agrees to adhere to the remaining lock-up period.

In May this year, Rakesh Gangwal and his family trust trimmed their holding by divesting a 5.72% stake in the airline for ₹11,564 crore in InterGlobe Aviation.

In August 2024, Gangwal's family trust sold a 5.24% stake in the airline for ₹9,549 crore. Before that, it had sold shares in March.

The share sale is part of Gangwal's decision in February 2022 to trim his shareholding after a bitter feud with co-founder Rahul Bhatia over alleged corporate governance issues.

Since February 2022, Gangwal and his wife, Shobha Gangwal, have been offloading their shares in IndiGo.

In September 2022, Rakesh Gangwal and Shobha Gangwal sold a 2.74% shareholding for ₹2,005 crore. In February 2023, Shobha divested a 4% stake in the company for ₹2,944 crore. Later in August, she sold a nearly 2.9% stake in the company for a little over ₹2,800 crore.

Amid differences with co-founder Rahul Bhatia, Gangwal, in February 2022, resigned from the board of directors of InterGlobe Aviation, and Rakesh Gangwal said that he would gradually reduce his equity stake in the airline over the next five years.

IndiGo Q1 FY26 Results

InterGlobe Aviation reported a net profit of ₹2,176 crore in the first quarter of the current financial year (Q1FY26), marking a decline of 20% from ₹2,729 crore in the same period last year.

“Despite a challenging operating environment marked by geopolitical tensions, airspace restrictions and the tragic accident in the Indian aviation sector, IndiGo reported a net profit of INR 21,763 million for the quarter ended June 30, 2025,” the company said in a press release.

IndiGo's revenue from operations, however, rose 5% to ₹20,496 crore from ₹19,571 crore in the year-ago period.

The company reported subdued operational performance as its earnings before finance income and cost, tax, depreciation, amortisation and aircraft and engine rental (EBITDAR) fell 1.2% to ₹5,739 crore and its EBITDAR margin shrank by 170 basis points to 28% at the end of the June quarter.

At the end of the first quarter, IndiGo had a fleet of 416 aircraft, up 9% from 382 aircraft in the same period last year.

The passenger volumes demonstrated a strong growth of around 12% year-over-year, reflecting resilient demand despite the external headwinds, IndiGo said.