IndiGo-parent InterGlobe Aviation likely to see another $1 billion block deal soon: Exclusive

After a series of stake sales by Rakesh Gangwal, another major block deal appears to be taking shape in InterGlobe Aviation Ltd., parent company of India’s largest airline, IndiGo — and this time, the seller is likely to be Rahul Bhatia, the co-promoter and Managing Director of InterGlobe Enterprises.

Sources in the know have told CNBC-TV18 that InterGlobe Enterprise is preparing to offload up to 4% stake in InterGlobe Aviation, aiming to raise nearly $1 billion (₹8,600 crore) through this block deal. In case the deal fructifies, it will be the second sale by Bhatia in just over a year.

InterGlobe Enterprises currently has a 35.7% stake in the airline and in case the transaction does take place, that number will come down to 32%. In June 2024, Bhatia had sold 2% stake in InterGlobe Aviation for ₹3,367 crore, selling shares at an average price of ₹4,362 per share. Since then, shares of IndiGo have risen over 20%, led by strong earnings, capacity expansion, and improving domestic and international demand.

Market observers believe this latest deal could take advantage of that rally, especially with the stock trading near record high levels.

When contacted for confirmation and comments on the potential block deal, IndiGo declined to comment.

Rakesh Gangwal, the airline’s other co-founder, has been steadily paring his stake ever since he announced his intent to exit the company back in 2022. Over the past three years, Gangwal has raised more than ₹40,000 crore through a series of stake sales. His holding has now fallen to below 8%, a sharp drop from the 36.6% stake he once held when IndiGo was listed.