IndiGo Airlines promoter Rakesh Gangwal and his family have decided to sell 4 percent stake in the airline. The lenders are JPMorgan, Morgan Stanley and Goldman Sachs.
IndiGo stake sell
Rakesh Gangwal, who resigned from IndiGo Board of Directors in February has decided to sell stake worth Rs 3,730 crore in the airline. During resignation, Gangwal said that he will totally sell his stake within next 5 years. On August 16 i.e. Tomorrow, Rakesh Gangwal family will sell 15.6 million shares on the block deal. This shares will have a base price of Rs 2,400 per share. Lenders of this deal are Morgan Stanley, JPMorgan and Goldman Sachs.
As per records in Bombay Stock Exchange, Gangwal family owned 29.72 percent stake in the airline as of June 2023. As per current market pricing, this stake equates to Rs 29,218 crore. Market capitalization of IndiGo is Rs 98,313 crore. The airline made a history as it became the first and only Indian airline to reach a market capitalization of 1 lakh crore.
India is seen as a burial ground for airlines. In such scenario, an airline posting market cap of 1 lakh crore is a great feat. The airline recently announced financial earnings result. In 1st quarter of Financial Year 23-24, it reported a net profit of Rs 3,090 crore. This is the highest ever quarterly net profit by IndiGo.
Qatar Airways Executive Akbar Al Baker was last year asked in an interview that as stake of IndiGo is on sale, will Qatar Airways it? Let me tell you that Qatar Airways has earlier shown interest in buying stake in IndiGo. However, Al Baker answered that Qatar Airways is not keen in buying this stake. It will go ahead, if it get stake belonging to Rahul Bhatia, who is a good friend of Qatar Airways CEO.
IndiGo is expanding its international network right now. The airline recently introduced non-stop flights to Nairobi, Tbilisi, Jakarta and Baku. It is reportedly in talks with Boeing for delivery of 25 Boeing 787 Dreamliner jets.
Source Credits : Livemint