Shares of InterGlobe Aviation on slumped 4.8 per cent to a day’s low of Rs 2,425 on August 16 after a block deal involving 5.1 per cent equity in the company took place on the bourses.
Around two crore shares or a 5.1 per cent stake in the company changed hands through a deal worth Rs 4,837 crore.
Gangwal family was earlier said to have put 15.6 million shares on the block with a floor price of Rs 2,400 per share, which was a 5.8% discount to the closing price of Monday.
Gangwals owned 36.66% of IndiGo in June 2022. Rakesh Gangwal, who has been pruning his stake since then, resigned from IndiGo’s board last February and had said that he would sell his take over the next five years.
In September last year, the family offloaded a 2.8 per cent stake in the airline for Rs 2,000 crore. Additionally, in February, they divested another 4 per cent share for Rs 2,900 crore. Rakesh Gangwal resigned from the Interglobe Aviation board in February 2022 and, according to the most recent stock exchange declarations, the family owns 29.72 per cent in the low-cost carrier. Upon departing from the board, Gangwal stated that the family had intentions to gradually reduce its ownership stake.
Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research, anticipates FTSE to include additional floating shares of InterGlobe Aviation, post the stake sale, within the next few days itself. “This inclusion is expected to generate a passive flow of approximately $ 15 million, involving 0.5 million shares,” he said.
The increase in free float in the counter after the block deal can prompt MSCI to consider an inclusion of the stock in its indices during the November review. “This anticipated inclusion could lead to an inflow of about $29 million, encompassing 1 million shares and resulting in a volume impact over one day,” Pagaria explained.
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