IndiGo Co-founder Rakesh Gangwal sells stake worth over Rs 7,000 crore in block deal: Report

economictimes.indiatimes.com:

IndiGo Co-founder Rakesh Gangwal is believed to have sold around 2.6 crore shares or 6.7% equity in a block deal worth over Rs 7,000 crore of the airline in a large block deal on Monday. While the stock fell initially, it traded around 2% higher at Rs 3,156 on BSE in the late morning session.

Details of the transaction would be known only in the evening hours when exchanges release bulk and block deals data. Bloomberg reported that Gangwal had offered the shares at a floor price of Rs 2,925.

Gangwal is cashing in with the stock trading near a record high, as a rapidly growing retail investor base and strong corporate earnings drive demand for Indian equities. It's the fourth time within two years that the co-founder has tapped investors through a block sale of IndiGo shares, according to data compiled by Bloomberg.

Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. were placement agents of the deal.

In the December quarter, IndiGo had reported a consolidated net profit of Rs 2,998 crore in the quarter ended December, which is up 111% from Rs 1,423 crore posted in the last year's quarter. Revenue from operations during the reporting period increased 30% year-on-year (YoY) to Rs 19,452 crore.

The airline ferried 27.5 million passengers in Q3, which is a growth of 23% YoY. The load factor during the quarter improved 85.8%.

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