IndiGo co-founder Rakesh Gangwal is expected to offload upto 13.2 million shares in a block deal on Tuesday, according to a term sheet viewed by businessline.
Per the term sheet, the stake sale — which accounts to around 3.4 per cent of total equity of airline — could fetch the sellers around ₹6,831 crore ($803 million) as per the offer floor price of ₹5,175 per share. The floor price is at 4.5 per cent discount to InterGlobe Aviation’s last closing price of ₹5,420.
Investment banks Goldman Sachs, JP Morgan and Morgan Stanley are managing the share sale on behalf of Gangwal. Gangwal holds around 13.5 per cent stake in the airline through individual ownership and Chinkerpoo Family Trust.
Gangwal has been selling shares in the airline in tranches over the past couple of years. While he continues to be classified as a promoter, he had earlier stepped down from the board following differences with co-founder Rakesh Bhatia on corporate governance issues and also said that he would gradually reduce his equity stake in the airline over the next five years.