Indigo Co-Founder Rakesh Gangwal To Sell His Stake For ₹2,000 Crore
The co-founder of IndiGo Rakesh Gangwal and his family trust are going to sell their 2.8% stakes of IndiGo which are worth ₹2,000 Crore ($250 Million).
Indigo Co-founder Rakesh Gangwal along with his family began the process 7 months after he announced his intention to sell all of his shares in IndiGo over a 5-years term and resigned from the board of directors of InterGlobe Aviation.
Gangwal was a non-executive plus non-independent director on the IndiGo board.
On Thursday, the Gangwal family including Gangwal trust are going to sell a 2.8% stake in InterGlobe Aviation through a block offer for $250 million or ₹ 2,000 crore.
The transaction involves 10.8 million shares, with the sale price set at Rs 1,850, or 6.75% less than the BSE closing on Wednesday.
InterGlobe Aviation is owned by the Gangwal family and their trust to the amount of 36.61%. Gangwal selected Citigroup, Goldman Sachs, Morgan Stanley, and JP Morgan earlier this year to oversee the sale process.
This stake sale was made possible thanks to a change made to the company’s articles of association, which permitted the promoters to sell shares without obtaining consent from one another.
The other airline co-founder, Rahul Bhatia, as well as other businesses, such as InterGlobe Enterprises, own 38.17% of the publicly traded company.
The relationship between Gangwal and Bhatia has deteriorated over the past few years. 2019 saw Gangwal charge Bhatia with engaging in “questionable related-party transactions” involving InterGlobe Aviation as well as Bhatia group entities. Bhatia refuted and disputed the accusations.
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.