Why Are IndiGo Shares Down Today?
Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

Congratulations!
You have successfully subscribed.

Shares of IndiGo Airlines, India’s biggest airline, slumped nearly 4% on Wednesday on reports that a promoter group was likely to sell a massive block of shares.

What Happened: The Gangwal family, promoters of IndiGo, is set to sell around $450 million (₹3,730 crore) worth of shares in a block deal on Wednesday, according to multiple media reports that cited a term sheet. The family has reportedly placed 15.6 million shares on sale with a floor price of ₹2,400 per share, reflecting a 5.8% discount to Monday’s closing price.

The deal is being managed by Morgan Stanley, JPMorgan, and Goldman Sachs.

See Also: ITC Shares Upbeat After Q1: Here’s What Global Analysts Want You To Do

As of June 2023, the Gangwal family held a 29.72% stake in IndiGo Airlines, and the total promoter stake in the company is 67.77%, according to BSE data. At current market prices, the Gangwal family’s stake is valued at around ₹30,000 crore, while the airline’s market capitalization stands at nearly ₹1 lakh crore.

After resigning from IndiGo’s board last February, Rakesh Gangwal said he plans to reduce his stake in the airline over five years from the 36.66% in he owned in June 2022.

Price Action: IndiGo’s share price was down 3.77% at ₹2,453 in early trade on Wednesday, recovering some losses after being more than 4% in the red at open.

Read Next: Why Vodafone Idea Shares Are Tanking After Q1 Results

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Comments
Loading...
EquitiesWIIMMarketsIndigo