Shares of InterGlobe Aviation, which operates IndiGo Airlines, dropped 3 per cent to a day’s low of Rs 4,714.90. As much as 6 per cent stake in IndiGo parent company, InterGlobe Aviation were sold in a block deal on August 29, with promoter and co-founder Rakesh Gangwal likely seeking a near complete exit. Around 2.3 crore shares of the airline operator changed hands at a floor price of Rs 4,760 apiece, valuing the deal at Rs 11,000 crore.

The official sellers of the transaction have not yet been disclosed.

Earlier reports indicated that Gangwal was aiming to sell a stake valued at Rs 6,750 crore; however, this amount was increased to Rs 11,000 crore.

Gangwal, the co-founder of India’s largest carrier, had stated his intention to gradually reduce his holdings after stepping down from the board in February 2022. Shobha Gangwal has since completely exited the airline.

For the quarter ended June 2024, Rakesh Gangwal held approximately 6 per cent of the company’s equity, while his family trust, The Chinkerpoo Family Trust, held a 13.49 per cent stake.

In August 2023, Shobha Gangwal sold a 4 per cent stake in the company through the open market for about Rs 2,944 crore.

Gangwal is likely capitalizing on the stock’s near-record highs, driven by a rapidly growing retail investor base and strong corporate earnings that are boosting demand for Indian equities.

In the past two years, the co-founder has tapped investors through a block sale of IndiGo shares more than five times. Over the last year, IndiGo shares have surged about 95 per cent.