InterGlobe Aviation Ltd, the parent of IndiGo saw its shares plunge in value on Thursday after the airline saw 1.7 crore shares change hands in the block deal window.

What Happened? In a large block deal, Indigo’s parent company saw 4.4% equity worth ₹3,221 crore change hands in early morning trade.

While buyers and sellers of the large deal were unknown, per a CNBC-TV18 report from Wednesday, Shobha Gangwal, the wife of IndiGo co-founder Rakesh Gangwal was supposed to sell a 4% stake in the company.

According to the report, the floor price for the block deal was set at ₹1,875 a share with Goldman Sachs appointed as the broker.

Following the deal, IndiGo’s promoter and promoter group’s stake in the airline would come down to 67.52% from what stood at 71.92% stake in the company.

It is also worth noting that this is the Gangwal family’s second round of promoter stake sale after selling a 2.8% stake at a floor price of about ₹2,005 crore in September 2022. Back in February 2022, Rakesh Gangwal stepped down from the company’s board and informed that he would sell his holdings in the airline over a roughly five-year period.

InterGlobe Aviation, meanwhile, reported a healthy rise in profit for the quarter that ended in December 2022. The net profit zoomed eleven times in the third quarter, led by a pick-up in demand for air travel.

The airline’s profit came at ₹1,422.6 crore in Q3 FY23 against a profit of ₹129.8 crore in the year-ago period. Revenue from operations rose 61% to ₹14,932 crore in the third quarter as against ₹9,294 crore in December 2021.

Total income jumped to ₹15,410.2 crore in the third quarter of the current fiscal from ₹9,480.1 crore in the year-ago period.

Price Action: InterGlobe Aviation aka IndiGo shares were trading 4.34% lower at ₹1,900 on mid-Thursday.