IndiGo Shares Slide 3% as Rakesh Gangwal Offloads INR 11,928-Cr Stake in Block Deal

After co-founder Rakesh Gangwal sold 2.26 crore shares, or roughly 5.8% of his ownership, in a big block sale, shares of InterGlobe Aviation, the parent company of IndiGo Airlines, fell more than 3%.

According to a media report, which cited people with knowledge of the situation, the deal brought in about INR 11,928 crore. The block deal was carried out at a floor price of INR 5,260 per share, which was around 3% less than the stock's most recent closing price.

According to reports, the purchase was managed by international financial banks Morgan Stanley, JPMorgan, and Goldman Sachs.

Move Marked as Gangwal’s Gradual Exit

Gangwal is continuing to gradually withdraw from the airline's parent firm with this stake sale. He had already announced plans to gradually lower his share in InterGlobe Aviation when he retired from the board in 2022.

 Gangwal is still one of the company's biggest stockholders even after he resigned. IndiGo, however, revealed impressive financial results for the quarter that concluded on March 31, 2025. Due to strong domestic travel demand, the airline reported a net profit of INR 3,067.5 crore for the second consecutive quarter.

The net profit for the same time last year was INR 1,894.8 crore. At INR 22,151.9 crore, operating revenue increased 24% year over year, falling slightly short of expert projections of INR 22,500 crore. With margins increasing to 31.4% from 24.8%, the airline's EBITDAR (Earnings Before Interest, Tax, Depreciation, Amortisation, and Rent) jumped to INR 6,948.2 crore from INR 4,412.3 crore a year earlier.

IndiGo Gone Through Major Overhauling Process

Since Pieter Elbers was appointed CEO of IndiGo in September 2022, the company has undergone a strategic transformation. Elbers, a seasoned veteran with over 30 years of experience at KLM Royal Dutch Airlines, contributed worldwide knowledge that has bolstered IndiGo's global presence and increased its domestic dominance.

However, because of the significant reliance on his leadership, Motilal Oswal Financial Services (MOFSL) identified a possible "key man" risk. With an average of one aircraft added per week and over 10 crore people carried yearly, the airline is currently operating at scale.

Through strategic airline alliances, it has increased its worldwide market share to 30% of Available Seat Kilometres (ASK) in FY25. In order to increase service reliability, efforts are also being made to improve consumer loyalty, increase brand recognition, and optimise flight schedules.

Due to increasing demand, fare increases, a lower price for crude oil, and a rising rupee, IndiGo shares have returned 18% so far in 2025 and 28% for the last six months.

Elara Securities pointed out that, because of occasions like the Maha Kumbh festival, IndiGo's passenger traffic increased steadily in FY25, rising from 5% YoY in Q1 to 20% in Q4.