IndiGo shares fly down 4.5% after Rs 4,837-cr share sale likely by Gangwal family

Shares of IndiGo operator, InterGlobe Aviation, fell 4.5% in early trading on August 16 after a block deal involving 5.1% of the company’s capital took place on exchanges. pandemic.
At 9:21 am, shares of InterGlobe Aviation traded down 3.66% to Rs 2,445.95 on the National Stock Exchange.
About two million shares or 5.1% shares of the company were changed hands in a deal worth Rs 4,837 crore.
While Moneycontrol has been able to identify the buyer and seller of the deal so far, it has previously reported, citing sources that the sponsoring organization, the Gangwal family led by Rakesh Gangwal, is looking how to raise $450 million, or about Rs 3,735 crore through block exchange. , the largest to date, while continuing to reduce its stake in the low-cost airline.
As reported by Monecontrol, the deal is likely to happen at a floor price of Rs 2,400 per share, representing a 5.8% discount from the final closing price of Rs 2,549 per share. In September last year, the family sold a 2.8% stake in the airline for Rs 2,000 crore. Furthermore, in February, they sold another 4% stake for Rs 2,900 crore. Rakesh Gangwal resigned from Interglobe Aviation’s board in February 2022 and according to the latest stock market filings, the family owns 29.72% of the low-cost airline. Upon leaving the board, Gangwal said the family intends to gradually reduce the stake. Abhilash Pagaria, head of Nuvama Quantitative & Alternative Research, expects the FTSE to add a floating stake in InterGlobe Aviation, following the sale of the shares, in the coming days. “This inclusion is expected to generate a passive inflow of about $15 million, involving 0.5 million shares,” he said.
An increase in the over-the-counter free-float ratio after the block deal could prompt MSCI to consider including the stock in its indexes during the November review, Pagaria explained: “This early inclusion could lead to to the cash flow of about $29 million, including 1 million shares, and affects the volume of transactions in a day.”