Indigo in air pocket

Indigo is creating a lot of turbulence today, falling over 5% to hit an intraday low at Rs.1885 and this is on a bulk deal wherein volumes currently stands at over 700x.

The data on the stock exchange shows that some 1.7 crore chares have changed hands today on the block deal window. This is a huge 4.4% stake sale for Rs.3221 crore.

Though the identities of the buyer and seller are not known, clearly it is the Gangwal family which was reported to be ready to sell stake, another 4% was the news.

This is the second such stake sale by the Gangwal family – in Sept’22, they had sold 2.74% stake, raking in Rs.2005 crore.

Till end of Q3FY23, the Gangwal family owned 34% stake and that will now come down to around 29%.

Following a falling apart of the two promoters, Gangwal and Bhatia in 2019 over allegations of corporate governance lapses, there was a SEBI inquiry and then an arbitration.

Gangwal then resigned from the airlines Board in Feb’22 and had stated then itself that over the next five years, he will reduce his stake in the airline quite substantially.