IndiGo’s Rakesh Gangwal to sell $801-million stake, trim holding to under 5%

IndiGo co-founder and promoter Rakesh Gangwal plans to sell shares worth $801 million in the country’s largest airline, according to a term sheet accessed by Mint. Goldman Sachs (India) Securities Pvt, Morgan Stanley India Co. and J.P. Morgan India Pvt are arranging the trade.

Under the updated terms, Gangwal and his Chinkerpoo Family Trust will sell up to 12.1 million — or about 3.1% shares — in InterGlobe Aviation Ltd, which runs IndiGo. The offer price of ₹5,808 reflects a nearly 4% discount to the stock’s closing price of ₹6,050 on Tuesday on the National Stock Exchange (NSE).

After this sale, Gangwal would own 4.71% of the company, while his co-promoter and current managing director of the airline, Rahul Bhatia, would own 35.73%.

At the end of December 2021, Gangwal owned 36.6%, and Bhatia owned 37.8% in InterGlobe Aviation, giving the duo a collective 74.78% ownership.

Gangwal has continuously pared his stake in the airline over the past few years, after a feud between him and Bhatia—the two co-founded the airline in 2006—was laid to rest.

In 2019, Gangwal accused Bhatia of corporate governance lapses. The dispute became public when he wrote to market regulator Sebi, pointing to issues such as related-party transactions and the chairman’s lack of independence.

In 2022, Gangwal resigned from the board of directors of InterGlobe Aviation. In a letter to the board, he said he intended to pare down his then 37% stake over the next five years and asked that no unpublished price-sensitive information be shared with him.

Among the stake sales that he undertook, Gangwal sold 5.83% stake in April 2024, another 5.83% last August, and 5.7% this May.

Industry leader

With about 64% market share, IndiGo dominates the airline industry in India. Last month, the airline reported a 20% year-on-year decline in its profit to ₹2,176 crore for the June quarter despite higher capacities.

Incidents such as the Pahalgam terrorist attack and the following India-Pakistan border clash, as well as the Air India flight crash of June, hit travel during the key summer break period.

However, revenue during the June quarter was up 6% year-on-year to ₹21,543 crore. At the same time, the 16% growth in available seat kilometres (ASK) to 42.3 billion, a measure of flying capacity, far outstripped the revenue growth.

“The June quarter was shaped by significant external challenges that created headwinds for the entire aviation sector,” said Pieter Elbers, chief executive officer of IndiGo in a press release. “Despite these industry-wide disruptions, we reported a net profit of INR 21,763 million with a net profit margin of around 11% for the quarter ended June 2025,” he said.