Meet man, an Indian, who is set to get richer by Rs 68310000000 due to…., his business is…
Rakesh Gangwal, promoter of InterGlobe Aviation, along with his family trust, is expected to divest up to a 3.4% stake in the airline on Tuesday, valued at a minimum of ₹6,831 crore, according to sources as reported by PTI.
Gangwal, co-founder of IndiGo, has been gradually reducing his stake after a contentious fallout with fellow co-founder Rahul Bhatia.
Apart from Gangwal, the Chinkerpoo Family Trust, whose trustees are Shobha Gangwal and JP Morgan Trust Company of Delaware, will be divesting 3.4 per cent stake in IndiGo, the country’s largest airline, the sources said.
Investment banking firms Goldman Sachs (India) Securities Pvt Ltd, Morgan Stanley India Company and J P Morgan India are the placement agents for the stake sale, they added.
Currently, Gangwal and the family trust together hold about 13.5 per cent in IndiGo.
Under the proposed transaction, to be executed on May 27, up to 1.32 crore equity shares will be sold at a floor price of Rs 5,175 per share, as per the term sheet accessed by PTI.
The floor price is at a 4.5 per cent discount compared to the closing price of Rs 5,420 per share on Monday.
The sources said 1.32 crore shares will amount to around 3.4 per cent stake in the company and the offer size, based on the floor price, is pegged at around USD 803 million or about Rs 6,831 crore.
The proposed share sale, to be done in multiple tranches on BSE and NSE, will be entirely secondary in nature and will not have any fresh issuance of equity.
As part of the deal structure, a 150-day lock-up period will apply to the vendors and their immediate relatives, barring one exception — they may transfer shares worth at least USD 300 million to a single investor or investor group through a negotiated transaction, subject to certain pricing and lock-up conditions.
In August 2024, Rakesh Gangwal’s family trust sold a 5.24 per cent stake in the airline for Rs 9,549 crore. Before that, Gangwal had sold shares of IndiGo in March.
The share sale is part of Gangwal’s decision in February 2022 to trim his shareholding after a bitter feud with co-founder Rahul Bhatia over alleged corporate governance issues.
In September 2022, Rakesh Gangwal and Shobha Gangwal sold a 2.74 per cent shareholding for Rs 2,005 crore. In February 2023, Shobha Gangwal divested a 4 per cent stake in the company for Rs 2,944 crore. Later in August, Shobha Gangwal sold a nearly 2.9 per cent stake in the company for a little over Rs 2,800 crore.
Rakesh Gangwal is the former CEO and chairman of US Airways Group. From June 2003 to August 2007 he was also the chairman, president, and CEO of Worldspan Technologies. From 2002 to 2003 he was involved in various business like private equity projects and consulting projects.
(With Inputs From PTI)
News