Gangwal, the co-founder of IndiGo, has been offloading his holding in a phased manner following a bitter fallout with co-founder Rahul Bhatia.
Apart from Gangwal, the Chinkerpoo Family Trust, whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware, will be divesting 3.4 per cent stake in IndiGo, the country’s largest airline, the sources said.
Investment banking firms Goldman Sachs (India) Securities Pvt Ltd, Morgan Stanley India Company and J P Morgan India are the placement agents for the stake sale, they added.
Currently, Gangwal and the family trust together hold about 13.5 per cent in IndiGo.
Under the proposed transaction, to be executed on May 27, up to 1.32 crore equity shares will be sold at a floor price of ₹5,175 per share, as per the term sheet accessed by PTI.
The floor price is at a 4.5 per cent discount compared to the closing price of ₹5,420 per share on Monday.
The sources said 1.32 crore shares will amount to around 3.4 per cent stake in the company and the offer size, based on the floor price, is pegged at around USD 803 million or about ₹6,831 crore.
The proposed share sale, to be done in multiple tranches on BSE and NSE, will be entirely secondary in nature and will not have any fresh issuance of equity.
As part of the deal structure, a 150-day lock-up period will apply to the vendors and their immediate relatives, barring one exception — they may transfer shares worth at least USD 300 million to a single investor or investor group through a negotiated transaction, subject to certain pricing and lock-up conditions.
In August 2024, Rakesh Gangwal’s family trust sold a 5.24 per cent stake in the airline for ₹9,549 crore. Before that, Gangwal had sold shares of IndiGo in March.
The share sale is part of Gangwal’s decision in February 2022 to trim his shareholding after a bitter feud with co-founder Rahul Bhatia over alleged corporate governance issues.
Since February 2022, Gangwal and his wife Shobha Gangwal have been offloading their shares in IndiGo.
In September 2022, Rakesh Gangwal and Shobha Gangwal sold a 2.74 per cent shareholding for ₹2,005 crore. In February 2023, Shobha Gangwal divested a 4 per cent stake in the company for ₹2,944 crore. Later in August, Shobha Gangwal sold a nearly 2.9 per cent stake in the company for a little over ₹2,800 crore.
