According to reports, Rakesh Gangwal, co-founder and promoter of IndiGo, may sell up to $850 million worth of shares in Interglobe Aviation, the airline's parent company, through block sales at a discounted indicative price of Rs 4,593 per share.
As of June 2024, Gangwal owned 5.89 percent of IndiGo; her spouse, Shobha Gangwal, and JPMorgan Trust of Delaware, together held 13.49 percent, making their combined ownership 19.38 percent. The Gangwal family intends to gradually decrease their ownership of IndiGo, and this includes the sale of a stake.
In February 2022, Rakesh Gangwal announced his resignation from the InterGlobe Aviation board of directors, announcing that he would be reducing his ownership in the low-cost airline over the following five years.
Interglobe Aviation's stock has increased by more than 63 percent so far this year. For the quarter that concluded in June 2024, InterGlobe Aviation reported a profit of Rs 2,736 crore, an 11.5 percent decrease from the net profit of Rs 3,090.6 crore during the same period the previous year.
The airline's Q1FY25 performance exceeded market forecasts because of a significant increase in domestic travel throughout the quarter. Jeffreys has revised its target price for the shares to Rs 5,225 and upgraded the stock to Buy. The company cited outstanding operating performance, which it claimed had continuously surprised over the previous 12 to 18 months. The airline's yields have remained strong due to the unstable industry capacity, according to Jefferies.
