IndiGo Co-Founder Rakesh Gangwal To Divest Stake Amid Ongoing Feud

In a significant financial maneuver, Rakesh Gangwal, one of the key promoters of InterGlobe Aviation, is set to divest up to 3.1% of his stake in IndiGo, India's largest airline. This action, expected to fetch Rs 7,027.7 crore, is part of a strategic phased exit from the company following bitter disputes with co-founder Rahul Bhatia.

The planned sale will be carried out through the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), targeting 12.1 million shares at a floor price of Rs 5,808 per share. This arrangement indicates a near 4% discount from IndiGo's last closing price of Rs 6,050, aiming to secure investor interest for what is exclusively a secondary sale of shares.

Gangwal's family trust, including the Chinkerpoo Family Trust headed by Shobha Gangwal and JP Morgan Trust Company of Delaware, are key participants in this divestment. This transaction marks another step in Gangwal's gradual retreat from IndiGo, following similar stake reductions in previous months amid allegations of corporate governance issues, leading to Gangwal's resignation from InterGlobe Aviation's board in February 2022.