Did IndiGo Co-Founder Rakesh Gangwal Sell a 5.8% Stake Worth Rs 11,928 Crore?
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Synopsis
Rakesh Gangwal, co-founder of IndiGo Airlines, has sold a significant stake worth nearly Rs 11,928 crore. This move has impacted the airline's stock, causing fluctuations in trading. Discover the implications of this transaction and IndiGo's recent financial performance in this detailed analysis.
Key Takeaways
- Rakesh Gangwal sold a 5.8% stake in IndiGo, impacting stock prices.
- Transaction valued at approximately Rs 11,928 crore.
- IndiGo's Q4 FY25 net profit increased by 61.89%.
- Revenue rose by 24.3% in the same quarter.
- Passenger traffic reached 3.19 crore, with a 19.6% increase.
New Delhi, May 27 (NationPress) Interglobe Aviation, the parent company of IndiGo Airlines, experienced a decline of nearly 3 percent in its stock on Tuesday, following the sale of 2.26 crore shares by co-founder Rakesh Gangwal, amounting to approximately Rs 11,928 crore in a block deal.
This block sale represented 5.8 percent of Gangwal's ownership in the prominent budget airline, as reported by multiple sources. Gangwal had stepped down from the board of InterGlobe Aviation in 2022, yet he continues to be one of IndiGo's major shareholders.
The minimum price for this transaction was set at Rs 5,260 per share, which is a discount of about 3 percent compared to the last closing price, according to reports.
Despite early losses, the stock rebounded and was trading at Rs 5,318.00 per share, down 1.88 percent around 11 am.
In the January–March quarter (Q4 FY25), IndiGo reported an impressive 61.89 percent year-on-year (YoY) increase in its consolidated net profit, reaching Rs 3,067.5 crore. This figure marked an increase from Rs 1,894.8 crore in Q4 FY24. Excluding foreign exchange effects, the profit surged 44.7 percent to Rs 2,981.1 crore in Q4, up from Rs 2,060 crore in the same quarter last year.
Revenue from operations in Q4 rose by 24.3 percent to Rs 22,151.9 crore, compared to Rs 17,825.3 crore in the previous year.
IndiGo's EBITDAR (earnings before interest, taxes, depreciation, amortisation, and rent) also saw a notable rise of 57.5 percent to Rs 6,948.2 crore during the quarter, with the EBITDAR margin improving to 31.4 percent, up from 24.8 percent in the same quarter the previous financial year.
The airline experienced a 21 percent increase in capacity and a 19.6 percent boost in passenger numbers during the quarter, totaling 3.19 crore travellers. The load factor also saw a slight rise to 87.4 percent, compared to 86.3 percent in Q4 FY24.
Point of View
I believe it's crucial to approach the recent stake sale by Rakesh Gangwal with a balanced perspective. While the immediate market reaction has been negative, it's essential to analyze the broader implications for IndiGo and its continued growth trajectory. As a leading budget airline, IndiGo's recent financial performance indicates resilience in a competitive industry.
NationPress
20/07/2025
Frequently Asked Questions
What percentage of stake did Rakesh Gangwal sell?
Rakesh Gangwal sold a 5.8 percent stake in IndiGo Airlines.
How much was the stake sale worth?
The stake sale was worth approximately Rs 11,928 crore.
What was the impact on IndiGo's stock?
IndiGo's stock saw a decline of nearly 3 percent following the announcement.
What were IndiGo's Q4 FY25 profits?
IndiGo reported a 61.89 percent YoY increase in consolidated net profit, totaling Rs 3,067.5 crore.
What was the trend in passenger numbers for IndiGo?
IndiGo witnessed a 19.6 percent increase in passenger numbers, reaching 3.19 crore travellers.
