Co-founder Rakesh Gangwal and his family will begin the process on Thursday, seven months after he announced he would sell all of his shares in the low-cost airline over the course of five years and resigned from the board of InterGlobe Aviation, the parent company of IndiGo.
Gangwal to sell Indigo stake for $250m
On the board, Rakesh Gangwal served as a non-executive and non-independent director. On Thursday, the Gangwal family and their trust will sell a 2.8% stake in InterGlobe Aviation through a block deal for $250 million or Rs 2,000 crore.
10.8 million shares will be purchased for a price of Rs 1,850 each, which is 6.75 percent less than the BSE closing price on Wednesday. Together, the Gangwal family and their trust own 36.61 percent of InterGlobe Aviation. Gangwal selected Citigroup, Goldman Sachs, Morgan Stanley, and JP Morgan to oversee the sale process earlier this year.
This stake sale was made possible thanks to a change made to the company’s articles of association, which allowed the promoters to sell shares without obtaining consent from one another.
The other airline co-founder, Rahul Bhatia, owns 38.17 percent of the publicly traded company along with other businesses, such as InterGlobe Enterprises.
Over the past few years, Gangwal and Bhatia have been at odds with one another. 2019 saw Gangwal charge Bhatia with engaging in “questionable related-party transactions” involving InterGlobe Aviation and Bhatia group entities. The accusations were refuted by Bhatia.
Pieter Elbers Joins IndiGo as CEO
Pieter Elbers, a Dutch national with experience in the aviation industry, was appointed CEO of IndiGo on September 6 with immediate effect. Since 2014, Elbers has held the positions of president and CEO of KLM Royal Dutch Airlines.
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