Rakesh Gangwal, co-founder of IndiGo Airlines, has sold a 5.8 percent stake in the airline’s parent company, InterGlobe Aviation. This large-scale block deal involved the sale of around 2.26 crore shares, valued at Rs 11,928 crore. Following the news, IndiGo’s stock price dropped nearly 3 percent in early trading on Tuesday.
Reports show the floor price for this transaction was set at Rs 5,260 per share. This price marked a discount of around 3 percent from the previous market close. Despite the early dip, IndiGo’s stock soon recovered and was trading at Rs 5,318.00 per share, a 1.88 percent decrease by 11 a.m.
Gangwal Exit from Board
Gangwal had stepped down from InterGlobe Aviation’s board in 2022. However, he remained one of the biggest shareholders in the company. His latest share sale signals a gradual exit strategy from the airline he helped establish.
Despite the stake sale, IndiGo’s financial performance remains strong. In the fourth quarter of FY25, the airline posted a significant year-on-year jump of 61.89 percent in net profit, which reached Rs 3,067.5 crore. In Q4 FY24, the profit stood at Rs 1,894.8 crore.
Adjusted Profit Gains
If we exclude the impact of foreign exchange changes, the adjusted net profit rose by 44.7 percent to Rs 2,981.1 crore compared to Rs 2,060 crore in the same quarter last year.
IndiGo also recorded a strong increase in operational revenue. In Q4, revenue from operations rose 24.3 percent to Rs 22,151.9 crore, up from Rs 17,825.3 crore in the same quarter last year.
Though Gangwal’s sale caused a temporary dip, the airline’s steady profit and revenue growth helped restore investor confidence. IndiGo continues to show strength in India’s competitive aviation sector.
About IndiGo
IndiGo, established in 2005 and commencing operations in 2006, is India’s largest low-cost airline, headquartered in Gurugram, Haryana. It operates over 2,200 daily flights to 125 destinations, including 91 domestic and 34 international routes. Known for its punctuality and extensive fleet of Airbus aircraft, IndiGo holds a dominant 64.1% share of the domestic market and is among the world’s largest airlines by passengers carried. Its primary hub is Indira Gandhi International Airport, Delhi.
