Synopsis: Rakesh Gangwal and his family trust are selling a 3.1% stake in IndiGo worth about Rs 7,000 crore, continuing their phased exit since 2022 after governance disputes with co-founder Rahul Bhatia. Marking ongoing promoter dilution in the airline.
Known for being India’s largest airline and a leader in the aviation sector, the company continues to remain in the spotlight for its market moves. In this update, attention shifts to a major shareholder planning to offload a significant stake, signalling a high-value transaction that investors will closely watch.
InterGlobe Aviation Limited’s stock, with a market capitalisation of Rs. 2,23,693 crores, fell to Rs. 5,755, hitting a low of up to 4.87 percent from its previous closing price of Rs. 6,050. However, the stock over the past year has given a return of 19 percent.
What happened?
The Rakesh Gangwal family is selling up to a 3.1% stake in InterGlobe Aviation (the parent company of IndiGo) via block deals, valued at around Rs 7,027 crore with a floor price of Rs 5,808 per share.
The sale is part of the Gangwal family’s continued phased exit from IndiGo, ongoing since 2022, following governance disputes with co-founder Rahul Bhatia. Since 2022, they have raised over Rs 45,300 crore by trimming their stake.
The shares fell around 4-5% on this news, reflecting market reaction to the stake sale and dilution by a major promoter group. No new shares are issued in this transaction; proceeds go to the selling shareholders. The family and related parties will have a 150-day lock-up restricting further sales after this deal.
This means the company is experiencing further dilution of ownership from one of its key founders, signalling reduced promoter holding and possibly a change in influence dynamics. The stock price drop reflects the market’s view on the increased supply of shares and potential concerns about governance or future strategic direction post-exit by Gangwal. However, IndiGo remains operationally strong with solid passenger metrics and revenue growth despite a recent profit dip.
Also read: 4 Largecap stocks with 526% YoY operating profit growth in Q1 to keep on your radar
Q1 Financial Highlight
In Q1FY26, revenue stood at Rs. 20,496 crore, up 4.7% YoY from Rs. 19,571 crore in Q1FY25, but down 7.5% QoQ from Rs. 22,152 crore in Q4FY25. Over the past three years, revenue has grown at a strong 46% CAGR, indicating sustained long-term momentum despite the sequential decline this quarter.
Profit for Q1FY26 came in at Rs. 2,161 crore, a sharp drop of 20.8% YoY from Rs. 2,727 crore in Q1FY25 and down 29.7% QoQ from Rs. 3,073 crore in Q4FY25. Despite near-term moderation, the company has delivered a robust 43% profit CAGR over three years, reflecting underlying profitability strength over the medium term.
Written By Fazal Ul Vahab C H
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