IndiGo Promoter Plans $1B Stake Sale Amid Share Drop

InterGlobe Enterprises, the parent company of IndiGo and led by co-founder Rahul Bhatia, is planning to sell up to a 4% stake in the airline to raise approximately $1 billion, reducing its holding from around 35.7% to about 32%. This potential block deal follows a series of stake reductions by co-founder Rakesh Gangwal, who has lowered his shareholding to below 8% after raising over ₹40,000 crore through previous sales since 2022. IndiGo's shares have recently fallen nearly 6% amid news of the stake sale and broader market concerns, including rising oil prices, geopolitical tensions in the Middle East, and the recent crash of an Air India Boeing 787 Dreamliner near Ahmedabad that killed all 241 onboard. Despite the stock decline, IndiGo reported strong financial results for Q4, with a 62% year-on-year increase in net profit and a 24% rise in revenue driven by robust domestic travel demand and favorable oil prices. Investor caution remains high due to the large promoter offloading and external uncertainties, including the potential economic impact of escalating geopolitical conflicts affecting global oil supplies. IndiGo has not officially commented on the planned stake sale or its implications.