Big block deal in IndiGo stock, InterGlobe Aviation stock fell around 5 percent

Indigo Block Deal: The stock of InterGlobe Aviation, which operates airlines under the IndiGo name, opened down about 5 percent in Wednesday’s trading session. Today’s trade saw the transaction in a block deal of 5% of the company’s equity. As the market opened in the morning, 18.19 million shares or 4.71 percent of the equity were traded. However, the name of how many shares were bought and sold in such a large number did not come out.

However, the family of IndiGo co-founder Rakesh Gangwal is believed to have sold shares in InterGlobe Aviation for Rs 3,730 crore in a block deal. Rakesh Gangwal and his family have plans to reduce their stake in the company. The floor price for the block deal was set at Rs 2,400 per share, a 5.9 percent discount from Monday’s closing price of Rs 2,549. After the block deal, the stock is currently trading at Rs 2460, down 3.49%.

Rakesh Gangwal’s family had put 15.6 million shares up for sale in the block deal, accounting for 4 percent of the total equity. Last year in February 2022, co-founder Rakesh Gangwal resigned as director of the company with immediate effect. In a letter to the IndiGo board, it said it plans to gradually reduce its stake in InterGlobe over the next five years. Rakesh Gangwal then held 14.65 per cent stake in Interglobe Aviation and his wife Shobha Gangwal held 8.39 per cent stake.

In the first quarter of the financial year 2023-24, InterGlobe Aviation posted excellent results due to the rapid increase in demand for air flights. In the first quarter of April-June, the airlines have made a record profit of Rs 3090.6 crore, which is 236% higher than the previous quarter. The impressive results for the past several quarters have also seen an impact on the company’s stock price. The stock has returned 30% to investors in the last six months and 116% in 3 years. In 2023, the stock has returned 23 percent to its investors.

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