New Delhi, Aug 27 (PTI) InterGlobe Aviation promoter Rakesh Gangwal and his family trust are likely to divest up to 3.1 per cent stake for Rs 7,027.7 crore in IndiGo on Thursday, according to a term sheet.
Gangwal, the co-founder of IndiGo, has been selling his equity in a phased manner, following a bitter fallout with co-founder Rahul Bhatia.
Apart from Rakesh Gangwal, the Chinkerpoo Family Trust, whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware, will be collectively divesting up to 3.1 per cent holding in IndiGo, the country's largest carrier, according to the term sheet accessed by PTI.
Investment firms Goldman Sachs (India) Securities Pvt Ltd, Morgan Stanley India Company and JP Morgan India are the brokers to the proposed transaction, they added.
As of June 2025, Gangwal and the family trust owned a 7.81 per cent holding in IndiGo, as per the shareholding data on the exchanges.
Under the proposed transaction, the sale will comprise up to 12.1 million shares (1.21 crore shares) at a floor price of Rs 5,808 per share, nearly 4 per cent discount to IndiGo's last closing price of Rs 6,050 on Tuesday on the NSE, as per the term sheet.
According to the term sheet, 1.21 crore equity shares will amount to around 3.1 per cent stake in the company, and the offer size based on the floor price is pegged at around USD 801 million or about Rs 7,027.7 crore.
The proposed transaction will be executed through one or more share sales on the NSE and BSE. The sale is entirely secondary in nature, meaning no new shares will be issued, and the proceeds will go to the selling shareholders.
After the completion of the transaction, Rakesh Gangwal and his family trust's holding in IndiGo will come down to 4.71 per cent from 7.81 per cent.
As part of the deal structure, the vendors and their immediate relatives will be subject to a 150-day lock-up period, restricting them from selling further shares during that time.
However, the term sheet allows for one negotiated transfer of shares worth at least USD 300 million to a single investor or group, provided such sale is done at or above the offer price and the buyer agrees to adhere to the remaining lock-up period.
In May this year, Rakesh Gangwal and his family trust trimmed their holding by divesting a 5.72 per cent stake in the airline for Rs 11,564 crore in InterGlobe Aviation.
In August 2024, Gangwal's family trust sold a 5.24 per cent stake in the airline for Rs 9,549 crore. Before that, it had sold shares in March.
The share sale is part of Gangwal's decision in February 2022 to trim his shareholding after a bitter feud with co-founder Rahul Bhatia over alleged corporate governance issues.
Since February 2022, Gangwal and his wife, Shobha Gangwal, have been offloading their shares in IndiGo.
In September 2022, Rakesh Gangwal and Shobha Gangwal sold a 2.74 per cent shareholding for Rs 2,005 crore. In February 2023, Shobha divested a 4 per cent stake in the company for Rs 2,944 crore. Later in August, she sold a nearly 2.9 per cent stake in the company for a little over Rs 2,800 crore.
Amid differences with co-founder Rahul Bhatia, Gangwal, in February 2022, resigned from the board of directors of InterGlobe Aviation, and Rakesh Gangwal said that he would gradually reduce his equity stake in the airline over the next five years. PTI HG HG BAL
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