Gangwal Family's Strategic Exit: IndiGo Stocks Take a Hit

Shares of InterGlobe Aviation, the parent company of IndiGo, fell by 3.50% after reports emerged that co-founder Rakesh Gangwal and his family trust plan to sell up to 3.4% of their stake. Currently holding 13.5%, the exit follows internal conflicts, impacting the stock market.

Shares of InterGlobe Aviation experienced a significant decline on Tuesday morning as news surfaced about a potential stake sale by one of its major promoters. Rakesh Gangwal, a key figure behind IndiGo, alongside his family trust, is reportedly planning to divest up to 3.4% of their shares.

The initial trade saw a tumble of 3.50%, with BSE and NSE recording further declines of 2.99% and 3.49% respectively. Amidst market jitters, it's anticipated that this transaction could be valued at Rs 6,831 crore, or approximately USD 803 million.

This move comes amidst an ongoing phased sell-off by Gangwal, who co-founded IndiGo and is currently in a contentious fallout with fellow co-founder Rahul Bhatia. In this prospective transaction, the Chinkerpoo Family Trust is also slated to participate, highlighting significant changes within the largest Indian airline.