IndiGo co-founder to sell stake worth ₹6,831cr in the airline
What's the story
Rakesh Gangwal, the co-founder of India's top airline, IndiGo, is looking to divest up to 3.4% of his family's stake in the company. According to Moneycontrol, the sale, if successful, will generate around ₹6,831 crore at a base price of ₹5,175 per share. The stake sale includes Gangwal and The Chinkerpoo Family Trust, who together own 13.5% in IndiGo.
Future plans
Gangwal family plans to gradually reduce IndiGo stake
The base price is a 4.5% discount to IndiGo's closing price of ₹5,420 per share on the NSE today. Investment banks Goldman Sachs, Morgan Stanley, and JP Morgan are advising the Gangwal family on these block trades. This transaction is part of the family's long-term strategy to gradually decrease their stake in IndiGo over time.
Profit growth
IndiGo's financial performance
IndiGo's shares have jumped nearly 20% since January 2025. On May 21, the airline announced a profit of ₹3,067.5 crore for the quarter ending March 31, 2025. This was its second consecutive profitable quarter owing to robust domestic travel demand across India. To note, the budget airline had reported a net profit of ₹1,894.8 crore in the same period the previous year.