Rakesh Gangwal, a co-founder of IndiGo, and his wife cash in on the sale of a 2.74% interest in the parent company InterGlobe

In total, Rakesh Gangwal and his wife sold 1.05 crore shares, or 2.74 percent of the firm. The shares were sold for between Rs 1,886.471,901.34 and Rs 2,004.77 crore, making the total transaction value around Rs 2,004.77 crore.

Rakesh Gangwal, a co-founder of IndiGo Airlines, and his wife Shobha sold a 2.74 percent interest in InterGlobe Aviation this week for Rs 2,005 crore. According to the bulk deal information made available by the National Stock Exchange, the Gangwals sold the stakes in open market transactions (NSE). Earlier in February 2022, Gangwal left the company’s board of directors and announced that he would gradually diminish his ownership of the company over the ensuing five years. The exchange withheld information regarding the purchasers.

In total, Rakesh Gangwal and his wife sold 1.05 crore shares, or 2.74 percent of the firm. The shares were sold for between Rs 1,886.471,901.34 and Rs 2,004.77 crore, making the total transaction value around Rs 2,004.77 crore. At the conclusion of the June quarter, the Gangwal family owned a total of 36.61 percent of the low-cost carrier, with Gangwal and his wife holding 14.6 percent and 8.39 percent, respectively. According to shareholder information, Chinkerpoo Family Trust owns the remainder. Rakesh Gangwal and Rahul Bhatia co-founded the low-cost airline IndiGo. The parent company InterGlobe Aviation is almost 38% owned by Rahul Bhatia and his affiliated companies.

Bhatia was chosen to take over as managing director for five years following Gangwal’s resignation. After Gangwal requested the Securities and Exchange Board of India (Sebiassistance )’s to address corporate governance issues in a letter in July 2019, the co-founders got into a fight. This was completed in December 2021 after the shareholders approved a resolution to lift the restrictions on the transfer of shares to third parties. In addition, Gangwal said he had limited authority over how the airline was run. In accordance with the agreements between IndiGo and Bhatia’s InterGlobe Enterprises, Gangwal was only permitted to appoint one director to the airline’s board while Bhatia was permitted to do so for a total of five. Additionally, Bhatia had the authority to name the managing director,  CEO and president.

On Friday morning, InterGlobe Aviation’s share price increased by almost 1%, reaching an intraday high of Rs 1959. A short time later, the share price fell, and the scrip began to trade in the red at about Rs 1940 per share.