IndiGo co-founder's family likely to reduce stake in the airline

Shares of Indigo fell nearly 3% on the back of reports that the Gangwal family is likely to sell stake in the airline.

The family of IndiGo co-founder Rakesh Gangwal is likely to sell between 5% - 8% of its shares in InterGlobe Aviation, the parent company of the Indian airline, for up to ₹7,500 crore, according to CNBC Awaaz.

As of March 31, Rakesh Gangwal and his wife Shobha Gangwal owned 13.23% and 2.99% of InterGlobe, respectively, while their Chinkerpoo Family Trust owned a 13.5% share in the company.

When the lock-in for shares opens on July 15, the Gangwal family would probably sell stakes in block deals, according to the CNBC Awaaz article.

In February, Shobha Gangwal decreased her ownership of the company by more than 4%.

Why is the family reducing the stakes in IndiGo?

Rakesh Gangwal left the company's board in February 2022 and promised to reduce his ownership of the airline over a five-year period.

In early 2020, Rakesh Gangwal and Rahul Bhatia, who had co-founded IndiGo in 2006, split up over the latter's desire to change some clauses in the company's articles of association.

Shares of indigo have risen nearly 19% year to date.