InterGlobe Enterprises Promoters to Sell 2% Stake in IndiGo at Discounted Rate

InterGlobe Enterprises, one of the promoters of IndiGo, is planning to sell 2% of its stake in IndiGo via a block deal. The value of the stake sale is anticipated to be around 394 million dollars, where the promotor plans to offload 77 lakh shares. These shares are marked at Rs. 4,266 apiece, at a 6% discount of its last closing price of Rs. 4553/ share on Monday on the NSE.

InterGlobe Enterprises

InterGlobe Enterprises is a multinational company with a strong foothold in aviation, hospitality, logistics, travel commerce, airline management, advanced pilot training, and aircraft maintenance engineering. According to exchange filings of March 31, 2024, Interglobe Enterprises held a stake of 37.75% in InterGlobe Aviation. The stock had surged by 60% in the past 6 months with the rise in air traffic across the country. Rahul Bhatia, the managing director at InterGlobe Enterprises has issued this sale and is now prohibited from further selling shares in the market for for 1 year.

InterGlobe Aviation (IndiGo)

IndiGo is India’s largest and most preferred passenger airline in India. With a fleet of 367 aircraft, it covers 88 destinations in India and 33 destinations internationally. It has a market share of 61.6% and aims to provide an affordable, courteous, and hassle-free travel experience. In Q4FY24, the company reported a net profit of around Rs.82 Billion. 

Impact on stocks:

The news of the block deal has led IndiGo shares to tank by 4%. On Tuesday morning, InterGlobe Aviation’s shares tumbled to Rs. 4361, with a total market capitalization of slightly below Rs. 170 lakh crore. On Tuesday morning, more than 79.98 lakh equity shares of IndiGo, amounting to Rs. 3493.41 Cr were traded on BSE. Similarly, on NSE, more than 16.57 lakh equity shares worth Rs. 733.93 Cr were exchanged.

Conclusion: 

With the sale of a 2% stake by its promotor entity, InterGlobe Aviation faces a tough challenge in the coming weeks as it marks a 4% fallout in share price in just 1 day.

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.