Gangwal to start sale of two.8% IndiGo stake for $250 million

Seven months after stepping down down from the board of InterGlobe Aviation — the mum or dad of finances airline IndiGo — and stating he would promote his total holding within the provider over a interval of 5 years, co-founder Rakesh Gangwal and his household will begin the method Thursday.

Gangwal served as a non-executive and non-independent director on the board. The Gangwal household and their belief will promote a 2.8 per cent stake by a block deal for $250 million or Rs 2,000 crore in InterGlobe Aviation on Thursday.

The deal is for 10.8 million shares and the value has been mounted at Rs 1,850 apiece, a 6.75 per cent low cost to the BSE closing on Wednesday. The Gangwal household and their belief cumulatively maintain a 36.61 per cent stake in InterGlobe Aviation. Earlier this yr, Gangwal appointed Citigroup, Goldman Sachs, Morgan Stanley and JP Morgan to handle the sale course of.

This stake sale grew to become doable after a modification within the firm’s Articles of Association, which allowed sale of shares by the promoters with out in search of approval from the opposite.

Rahul Bhatia, the opposite co-founder of the airline, and different entities — together with InterGlobe Enterprises — maintain 38.17 per cent within the listed entity.

Gangwal and Bhatia have been at loggerheads over the previous few years. In 2019, Gangwal accused Bhatia of indulging in ‘questionable related-party transactions’ between InterGlobe Aviation and Bhatia group entities. Bhatia denied and countered the allegations.

Meanwhile, on September 6, Dutch nationwide and aviation veteran Pieter Elbers took cost because the CEO of IndiGo with rapid impact. Elbers served because the president and CEO of KLM Royal Dutch Airlines since 2014.  FE