Indian airline IndiGo’s largest shareholder sells 2% stake worth $394 million, BA

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IndiGo airline’s largest shareholder will sell a 2 percent stake worth $394 million in the low-cost Indian carrier on Tuesday, according to a term sheet seen by Reuters. This is the first such sale in at least four years in which the company’s shares have soared. .

Interglobe Enterprises, which had a 37.75 percent stake in IndiGo operator Interglobe Aviation, will sell the shares at a base price of Rs 4,266 each, the term sheet showed.

That’s a 6.6 percent discount on the stock’s closing price on Monday. The stock fell 3.6 percent to 4,403.40 rupees on Tuesday.

Interglobe Enterprises, led by IndiGo co-founder Rahul Bhatia, will not be able to sell any shares for the next 365 days, the term sheet showed.

According to stock market data, this is Interglobe Enterprises’ first share sale in at least four years, during which its share value has more than quadrupled. In contrast, Rakesh Gangwal, IndiGo’s other co-founder, and his wife Shobha have been reducing their stake through multiple share sales for over a year now.

Still, IndiGo shares are up about 85 percent in the past year, hitting multiple all-time highs during that period.

Interglobe Enterprises is also active in the hospitality and logistics sectors and has partnered with US-based Archer Aviation to launch electric air taxis in India.

About 1.1 million IndiGo shares changed hands via block trades on Tuesday, according to National Stock Exchange data, all at a discount to the last closing price but above the base price.

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IndiGo has ordered more than a thousand jets from Airbus, is focusing on long-distance travel and will introduce business class cabins later this year.

Citigroup is the sole broker for the deal.

  • Published on Jun 11, 2024 at 3:06 PM IST

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