InterGlobe Aviation Records Block Deal of 2.6 Crore Shares

InterGlobe Aviation Ltd (IndiGo), India’s largest passenger airline engaged in providing airline services in both the passenger and commercial segments, is in the spotlight today due to block deals incurred in the company’s shares during the morning trading session.

Block Deal:

In today’s morning trading session, around 2.6 crore shares, representing a 6.7% stake, were exchanged in a block deal in InterGlobe Aviation Limited on March 11. The total transaction value of the deal is approximately Rs 7,823 crore. The identities of the buyers and sellers involved in the transaction were not immediately known. However, sources have indicated that the promoter, earlier Rakesh Gangwal, was planning to sell between a 3% to 6% stake in the company to raise around Rs 3,723 crore through this transaction.

According to the December quarter, Gangwal Family owns 25.21% stake in the company whereas Rakesh Gangwal owns 11.72% and Family Trust 13.49% stake in the InterGlobe Aviation.

In February 2022, the co-founder stepped down and revealed intentions to gradually reduce his family’s ownership stake. During that month, the Gangwal family sold a 4% stake for Rs 2,900 crore. Subsequently, in September, they further divested a 2.8% stake valued at Rs 2,000 crore. The most recent significant block deal occurred in August when the family sold a stake worth USD 450 million, representing the largest block deal to date.

Share Performance:

At the start of the day, the company’s shares commenced trading at Rs 3,039 per share, a decrease compared to the previous day’s closing price of Rs 3,101.55 each on the BSE. Currently, InterGlobe Aviation’s shares are trading at Rs 3,131.60 apiece, reflecting a 0.97% increase from the previous day’s close. The current market capitalisation is Rs 1,20,873 crore.

Furthermore, the company’s shares are trading 5.10% below their all-time high price of Rs 3,300 each. Additionally, the stock has generated a return of 7% in the past three months and 66% over the past year.

Financial Performance:

During the December quarter, InterGlobe Aviation reported revenues of Rs 19,452 crore, compared to the revenue of Rs 14,933 crore in the same quarter last year, representing a growth of 30.26% YoY. The company’s operating profit stood at Rs 5,144 crore, resulting in an operating profit margin of 26%, compared to an operating profit of Rs 3,114 crore. Moreover, the company reported a net profit of Rs 2,998 crore, compared to a net profit of Rs 1,418 crore, representing a significant growth of 107% YoY during the quarter.

Company Overview:

InterGlobe Aviation Limited (IndiGo) is India’s largest passenger airline, operating as a low-cost carrier. Serving 86 destinations, including 24 international destinations, it provides passengers with a simple, unbundled product, fulfilling its singular brand promise of offering “low fares, on-time flights, and courteous and hassle-free service” to its customers. IndiGo commenced operations in August 2006 with a single aircraft and has grown its fleet to around 262 aircraft.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.