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- By Vaamanaa Sethi
- Wed, 16 Aug 2023 12:22 PM (IST)
- Source:JND
Shares of InterGlobe Aviation, which runs Indigo airlines, saw a steep decline by 4.5% in early trade on Wednesday after the promoter Gangwal family likely pared a part of its 29.72% stake in the company via block deals.
According to media reports, Gangwal family had put 15.6 million shares on the block with a floor price of Rs 2,400 per share, which was a 5.8% discount to the closing price of Monday.
InterGlobe Aviation shares were trading 3.66% lower at Rs 2,445.95 on the NSE at 9:20 am IST, on August 16.
The Gangwal family owned 36.66% of IndiGo in June 2022. Led by Rakesh Gangwal, the family was looking to raise $450 million or around Rs 3,735 crore via a block trade, the biggest so far, while further paring stake in the low-cost carrier.
The family sold a tranche of 2.8% worth Rs 2,000 crore and in February, sold a 4% stake for Rs 2,900 crore last year. Rakesh Gangwal also stepped down from the board of Interglobe Aviation in February 2022 and the family holds a 29.72% stake as per the latest stock exchange disclosures.
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According to the Moneycontrol report, the offer floor price is Rs 2,400 per share, representing a 5.8% discount to the last close price of Rs 2,549 per share. Morgan Stanley, Goldman Sachs and JP Morgan are the investment banks advising the Gangwal family on the proposed transaction.
As per reports, this move could further lead to a change in weightage in MSCI and FTSE indices. "This inclusion is expected to generate a passive flow of approximately $15 million," Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research, was quoted as saying by The Economic Times.
He further added, “ This anticipated inclusion could lead to an inflow of about $29 million, encompassing 1 million shares and resulting in a volume impact over 1 day.”