IndiGo Airlines (6E, Delhi International) has denied reports that its majority owners, Rakesh and Shobha Gangwal, intend to sell off further stakes in the airline. Despite this, shares in InterGlobe Enterprises, the airline's parent company, have fallen around 5% on the back of speculation since markets opened on Monday, June 12.
India-based media have reported that the Gangwal family were readying to sell between 5% and 8% of the airline in a deal worth approximately INR75 billion rupees (USD911.3 million). If correct, it would continue a trend of the family selling down its shareholding in the successful low-cost carrier.
According to Bombay Stock Exchange (BSE) data, Rakesh Gangwal held 5,10,21,132 shares (13.23% of the total on issue) in InterGlobe as of March 31, while his wife, Shobha Gangwal held 1,15,23,361 shares (or 2.99%). Their Chinkerpoo Family Trust holds a further 5,20,50,413 shares (13.5%). In total, IndiGo's promoters own 67.86% of InterGlobe. The family has previously stated its intention to wind down their involvement in the airline they helped found. Earlier this year, Shobha Gangwal sold a 4% shareholding, and Rakesh Gangwal resigned from InterGlobe's board and said he would also gradually reduce his stake in the business.
Despite the share price drop this week, shares in InterGlobe Aviation are up more than 15% this calendar year and 36% compared to mid-June 2022. Denying the latest sale speculation, InterGlobe told the BSE on June 13, 2023, that "the company has not received any such information nor has the company been made aware by the co-founder of their intention to sell their stake."
Established in 2005, IndiGo Airlines has grown to become one of India's best-performing airlines. ch-aviation PRO airlines data shows that the carrier operates to 100 destinations in 16 countries with its fleet of 314 aircraft, primarily narrowbody Airbus aircraft but also sub fleets of thirty-nine ATR72-600s and three wet-leased Turkish Airlines B777-300ERs. IndiGo has dodged many of the financial and operational challenges hindering competitors Go First (Mumbai International) and SpiceJet (SG, Delhi International). Instead, the airline continues to expand its network, including its international operations and is widely expected to place a massive order with Airbus shortly. If those expectations prove correct, IndiGo Airlines will end up with around 1,000 aircraft on order with the manufacturer.
