Report: IndiGo co-founder Rakesh Gangwal to sell his shares

The report suggests that Gangwal will sell his IndiGo shares worth $1.4 billion.

The latest reports in the business space reveal that the co-founder of IndiGo, Rakesh Gangwal, will be selling his shares from the company, which are said to be worth $1.4 billion through block trades. This is Gangwal’s third share sale in IndiGo since March 2024.

IndiGo co-founder to sell his shares worth billions.

As reported by Bloomberg, Rakesh Gangwal, co-founder of IndiGo Airlines, and his family trust currently own around 13.5% of IndiGo shares. The report by Reuters suggests that he will sell up to a 5.7% stake in the company through a block deal valued at around $1.4 billion, as per a term sheet reviewed on Tuesday. In the deal, the sale will have a floor price of ₹5,175 ($60.84) per share, according to the term sheet. This means there would be a 4.5% discount from IndiGo’s closing price of ₹5,420 on Monday, revealed the document.

Millions of shares of IndiGo Airlines will be sold.

The report added that as many as 22 million shares of IndiGo Airlines will be sold, which is an increase from the initially planned 13.2 million shares, estimated to be worth around $803 million. Among those leading the share sale include JP Morgan, Goldman Sachs, and Morgan Stanley. However, despite Reuters reaching out for a comment, IndiGo hasn’t responded to the development yet.

According to reports by Bloomberg, Rakesh Gangwal and his family trust, The Chinkerpoo Family Trust, currently own around 13.5% of IndiGo shares. The report revealed that Gangwal owns 5.3% of the shares, while his family trust owns the remaining 8.23%. This deal would be his third share sale in just a little over a year since March 2024. Previously, he had sold his shares worth $2 billion through block trades.