Shares of InterGlobe Aviation (IndiGo) rose over a per cent in morning trade on BSE on Wednesday (Jun 14) after the company said in a response to the domestic stock exchanges that it did not have any idea about the co-founder Rakesh Gangwal and his company selling their stake.
The stock suffered losses in the last two trading sessions after reports emerged that IndiGo’s co-founder Rakesh Gangwal and his family were likely to sell between 5 per cent and 8 per cent stake in InterGlobe Aviation, worth up to 75 billion rupees ($909.58 million).
The BSE and NSE had sought clarification from the company with respect to this news. On June 13, the company said in a BSE filing that it did not receive any such information and was not made aware by the co-founder of their intention to sell their stake.
“We would like to state 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,” IndiGo clarified.
Read more: IndiGo says not aware of co-founder Gangwal family’s stake sale plans
In September 2022, Gangwal and his family sold a 2.8 per cent stake or 1.08 crore shares in InterGlobe Aviation through a block deal via two separate transactions. In February, Sobha Gangwal cut her stake in the company by over 4 per cent.
In February 2022, Gangwal resigned from the board as a non-executive, non-independent director. The company’s board had then unanimously approved the appointment of its co-founder Rahul Bhatia as the managing director.
According to the shareholding pattern data on BSE, Rakesh Gangwal and his wife, Shobha Gangwal, held 13.23 per cent and 2.99 per cent respectively in InterGlobe as of March 31. Their Chinkerpoo Family Trust held a 13.50 per cent stake in the company as of the end of the March quarter of FY23.
Gangwal co-founded IndiGo with Bhatia in 2005. IndiGo is now the largest airline in India with a fleet of over 300 aircraft, cornering a 57.5 per cent market share in domestic air traffic.
IndiGo shares have gained significantly in the last one year. The stock is up nearly 35 per cent in the last tone year against a 19 per cent gain in the equity benchmark Sensex.
The stock traded 1.16 per cent higher at ₹2,366 on BSE around 10:15 am.
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Updated: 14 Jun 2023, 10:23 AM IST