InterGlobe Aviation Ltd (IndiGo) shares are in focus on Monday as co-founder Rakesh Gangwal is reportedly planning to sell up to 5.8% of his stake in the airline, valued at around ₹6,600 crore, with a floor price set at ₹2,925 per share.

What Happened: According to a CNBC-TV18 report, this planned sale exceeds an earlier intention to sell 3.3% of his stake. IndiGo’s shares ended last Thursday at ₹3,101.55 each, making the floor price a 5.69% discount on the closing price.

InCred Equities recently advised investors to ‘reduce’ their stakes in IndiGo, noting that despite the grounding of 35 planes in the fourth quarter of fiscal year 2024, affecting 5% of the industry’s fleet, IndiGo’s tariffs would remain unaffected due to additional plane leases to meet capacity targets.

The firm anticipates IndiGo’s entire fleet to be fully operational by fiscal year 2026, increasing industry capacity by 14% and potentially lowering tariffs. InCred Equities has set a ‘reduce’ rating on IndiGo’s stock with a target price of ₹2,000, valuing the airline at 8.5 times its FY26 EV/EBITDAR.

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Furthermore, InCred Equities expects IndiGo’s available seat kilometre (ASK) to align with industry growth, narrowing the revenue per available seat kilometre (RASK) – cost per available seat kilometre (CASK) gap with competitors like Air India and Vistara since fiscal year 2020.

Rakesh Gangwal stepped down from InterGlobe Aviation's board in February 2022, announcing his intentions to gradually reduce his family's stake in the company.

Price Action: Indigo shares were trading 0.49% higher at ₹3,120.85, shortly after market open.

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