Gangwal, the co-founder of IndiGo, has been offloading his holding in a phased method following a bitter fallout with co-founder Rahul Bhatia.
Aside from Gangwal, the Chinkerpoo Household Belief, whose trustees are Shobha Gangwal and JP Morgan Belief Firm of Delaware, will likely be divesting 3.4 per cent stake in IndiGo, the nation’s largest airline, the sources mentioned.
Funding banking companies Goldman Sachs (India) Securities Pvt Ltd, Morgan Stanley India Firm and J P Morgan India are the location brokers for the stake sale, they added.
At the moment, Gangwal and the household belief collectively maintain about 13.5 per cent in IndiGo.
Underneath the proposed transaction, to be executed on Might 27, as much as 1.32 crore fairness shares will likely be offered at a flooring worth of ₹5,175 per share, as per the time period sheet accessed by PTI.
The ground worth is at a 4.5 per cent low cost in comparison with the closing worth of ₹5,420 per share on Monday.
The sources mentioned 1.32 crore shares will quantity to round 3.4 per cent stake within the firm and the provide measurement, based mostly on the ground worth, is pegged at round USD 803 million or about ₹6,831 crore.
The proposed share sale, to be executed in a number of tranches on BSE and NSE, will likely be totally secondary in nature and won’t have any recent issuance of fairness.
As a part of the deal construction, a 150-day lock-up interval will apply to the distributors and their fast kinfolk, barring one exception — they could switch shares value not less than USD 300 million to a single investor or investor group by a negotiated transaction, topic to sure pricing and lock-up circumstances.
In August 2024, Rakesh Gangwal’s household belief offered a 5.24 per cent stake within the airline for ₹9,549 crore. Earlier than that, Gangwal had offered shares of IndiGo in March.
The share sale is a part of Gangwal’s determination in February 2022 to trim his shareholding after a bitter feud with co-founder Rahul Bhatia over alleged company governance points.
Since February 2022, Gangwal and his spouse Shobha Gangwal have been offloading their shares in IndiGo.
In September 2022, Rakesh Gangwal and Shobha Gangwal offered a 2.74 per cent shareholding for ₹2,005 crore. In February 2023, Shobha Gangwal divested a 4 per cent stake within the firm for ₹2,944 crore. Later in August, Shobha Gangwal offered an almost 2.9 per cent stake within the firm for slightly over ₹2,800 crore.
