The shares of InterGlobe Aviation, the parent of India's largest airline IndiGo fell 4.5 per cent on Wednesday after two crore shares exchanged hands in multiple block deals, revealed data available on the exchanges.
The shares representing 5 per cent of the total equity worth ₹4,837 crore were exchanged through a block deal. The shares exchanged hands at a cost of ₹2,430 per share, this is 4.6 per cent down from Monday's closing price.
According to media reports, the Rakesh Gangwal family may have sold the shares of the company. As of June 30, 2023, the Gangwal Family held 29.72 per cent stake in InterGlobe Aviation, but post the sale on Wednesday the shares held by the Gangwal family will go down to 24.72 per cent.
Additionally, the Gangwal family will now have a 150-day lock-in period before they can have any more transactions. A lock-in period is the time frame for which the investments cannot be sold or redeemed. This essentially means that the company will not be able to make another sell until January 2024.
Goldman Sachs, Morgan Stanley and JPMorgan are the investment banks advising the family on the block deal.
Gangwal family sale of stake
The Gangwal family in February had sold 4 per cent stake in the company for ₹2,900 crore through a block deal. Prior to this, Rakesh Gangwal and his wife Shobha had sold 2.74 per cent stake in InterGlobe Aviation for Rs 2,005 crore through open market transactions.
The shares of InterGlobe Aviation on Wednesday morning had opened 4.2 per cent lower at Rs 2,442.70.
