What could weigh on InterGlobe Aviation shares today? All you need to know

Stocks to Watch on Monday, March 11: Rakesh Gangwal could sell a 3.3-per cent stake (130 million shares) in IndiGo to raise around $450 million

Shares of InterGlobe Aviation Ltd - the parent firm of IndiGo - will be on investor radar on Monday, March 11, as promoter Rakesh Gangwal and entities may likely sell over 3 per cent stake in the company through block deals today.

According to reports, Gangwal could sell a 3.3-per cent stake (130 million shares) in IndiGo to raise around $450 million. "The offer floor price for the proposed block deal is Rs 2,925 per share, which is nearly 6 per cent below its last close price," the report added.

Morgan Stanley, JP Morgan and Goldman Sachs are the investment banks advising Gangwal on the transaction

The block deal is a fourth from Gangwal. He has been gradually diluting stake since 2022. At present, Rakesh Gangwal and related entities have 25 per cent stake in the company. 

One of the founders of IndiGo, Gangwal was the president and chief executive officer of US Airways Group from 1998 until his resignation in 2001. He later served as head of travel technology firm Worldspan Technologies before setting up IndiGo with Rahul Bhatia.

During the October-December quarter, IndiGo operator Interglobe Aviation reported more than two-fold growth in third-quarter profit, helped by air travel demand and higher fares in a seasonally strong period.

The company reported a standalone profit of Rs 2,998 crore for the quarter ended Dec 31, compared to Rs 1,418 crore in the year-ago period.

IndiGo's revenue rose 30 per cent to Rs 19,452 crore, which analysts attributed to higher fares.