You are here: Home » Markets » News
Gold, silver prices decline in early trade, silver selling at Rs 52,800/kg
Deja vu? Key reasons why Jefferies thinks the market rally may not sustain
Business Standard

InterGlobe Aviation dips 5% on news of partial stake sale by Rakesh Gangwal

Till 09:26 am; around 19.67 million equity shares, representing 5.1 per cent of the airline's total equity, changed hands on the NSE and BSE.

Buzzing stocks | Airline sector | InterGlobe Aviation

SI Reporter  |  Mumbai 

indigo, airlines, aviation, flights, air craft

Shares of dropped 5 per cent to Rs 1,885 on the National Stock Exchange (NSE) in Thursday’s intra-day trade, after nearly 5 per cent of the airline's total equity changed hands via block deals.

Till 09:26 am; around 19.67 million equity shares, representing 5.1 per cent of the airline's total equity, changed hands on the NSE and BSE. The names of the buyers and sellers were not ascertained immediately. Currently, the stock traded 3 per cent lower at Rs 1,921, as compared to 0.85 per cent rise in the Nifty 50.

is engaged in the business of providing domestic and international scheduled air transport services under the name of 'IndiGo'. It is is one of the most efficient low cost carriers (LCC) with a market share of 54 per cent in Indian aviation sector.

According to a report by Business Standard, IndiGo’s co-promoter Rakesh Gangwal will sell up to 2.8 per cent stake in the parent company through block deals of about Rs 2,000 crore. CLICK HERE FOR FULL REPORT

As of June 30, 2022, Rakesh Gangwal held 14.65 per cent stake, while his wife Shobha Gangwal held 8.39 per cent stake in InterGlobe Aviation, data shows. Total promoters, on the hand, held 74.77 per cent, data shows.

Rakesh Gangwal tendered his resignation from the position of Non-Executive Director of InterGlobe Aviation with effect from February 18, 2022 and said he would reduce stake in the company gradually, over the next five years.

"I have been a long-term shareholder in the company for more than 15 years and it is only natural to someday think about diversifying one's holdings. Accordingly, my current intention is to slowly reduce my equity stake in the company over the next five plus years. While new investors should benefit from the potential future growth in the company's share price, a gradual reduction of my stake should also allow me to benefit from some of the upside,” Gangwal wrote in his letter to the board. CLICK HERE FOR FULL LETTER

Meanwhile, analysts at Geojit Financial Services expect the tourism and corporate travel growth momentum to continue. Given Indigo’s capacity expansion, penetration into Tier 2-3 cities, and focus on route optimization, analysts believe that these factors will help them to gain further market share.

“We continue to maintain positive view on Indigo considering its market leadership position, capability to leverage its network, cost efficient fleet, and healthy cash position. While domestic and international traffic is back to pre-covid levels, we expect moderation in fuel and ticket prices to improve earnings going ahead,” the brokerage firm said.

Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Thu, September 08 2022. 10:07 IST