Indigo shares down on reports of Interglobe Enterprises looking to sell 2% stake

Shares of Indigo, the country's largest airline in terms of market share, was down more than 4% in the opening hour of trade on Monday, June 10.

The plunge in stock came after reports, a day earlier, claimed that Interglobe Enterprises is looking to pare up to 2% stake in the carrier.

Interglobe Enterprises, which is promoted by Rahul Bhatia, owns 37% stake in InterGlobe Aviation, the parent entity of IndiGo.

Bhatia has launched the block deal to offload 2% stake in IndiGo, Moneycontrol reported, citing sources.

On the NSE, the shares plunged to a low of Rs 4,372.5 apiece shortly after the opening bell. This was 4.2% down as compared to the last closing price.

By 9:53 am, the shares partially recovered to trade at Rs 4,403.7 apiece, but were still down 3.57% as against the previous day's close.

While the details related to Bhatia's block deal was yet to be released, Moneycontrol learnt from sources that the stock was to be offloaded at ₹4,266 per share. This would mark a 6.5% discount as against the last closing price.

Notably, Indigo's shares have given strong returns at the stock market. Year-to-date, the surge has been on 47.5%, whereas a growth of 87% has been recorded in the past 12 months.

The company also logged a solid March 2024 quarter, with the net profit doubling year-on-year (YoY) to ₹1,894.8 crore. The company's revenue from operations increased 26% YoY to ₹17,825.3 crore.