Indigo shares crash 4.6% as Gangwal family offloads stake via block deal
financialexpress.comInterGlobe Aviation shares tanked 4.6% in trade on Wednesday as IndiGo co-founder Rakesh Gangwal offloaded 5.1% or around two crore shares in a block deal in early trade. The floor price for the offer was presumed to be set at Rs 2,400 apiece, which would come in at a 5.8% discount to Monday’s closing price of Rs 2,549.
The block transaction aligns with Rakesh Gangwal’s strategy to reduce his share in InterGlobe Aviation, which oversees IndiGo, India’s premier airline. Previously, in September 2022, Gangwal, along with his family, divested 2.8% of their shares in the airline, netting Rs 2,000 crore. This February, they let go of another 4% share, securing Rs 2,900 crore.
Based on the reports ahead of the block deal, Nuvama Alternative & Quantitative Research said that the FTSE index provider should include additional floating shares within the next few days itself. This inclusion is expected to generate a passive flow of approximately $15 million, involving 0.5 million shares and resulting in a volume impact over 0.5 days.
Additionally, Nuvama added that it is highly likely that the MSCI index will incorporate additional floating shares during the November review. This anticipated inclusion could lead to an inflow of about $29 million, encompassing 1 million shares and resulting in a volume impact over 1 day.
For the quarter ended 30 June 2023, IndiGo operator InterGlobe Aviation reported a net profit of Rs 3,090 crore in net profit, its highest ever quarterly earnings. In the corresponding period a year ago, the budget carrier posted a net loss of Rs 1,064.2 crore. Sequentially, the profit jumped 236% from Rs 919.8 crore recorded in Q4FY23.
“We believe Indigo is well-placed on its own trajectory, given strong air
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