Rahul Bhatia, one of the co-founders of IndiGo, India’s largest airline, has made a strategic move by selling a 2% stake in InterGlobe Aviation Ltd, the parent company of IndiGo, in a block trade.
The transaction involved the sale of 7.72 million shares of InterGlobe Aviation, amounting to nearly 2% of IndiGo’s total share capital, through a block trade on behalf of Bhatia’s InterGlobe Enterprises Pvt Ltd. The deal, valued at over ₹3,360 crore, aims to channel the proceeds towards expanding the company’s hospitality ventures and other emerging businesses, in addition to meeting general corporate needs.
While Bhatia remains committed as a promoter and managing director of IndiGo, collaborating closely with CEO Pieter Elbers to steer the airline’s strategic course, this divestment underscores a broader vision for diversification and growth within the InterGlobe Enterprises portfolio.
Despite the sale, InterGlobe Enterprises retains its position as the largest shareholder of IndiGo, maintaining a stake of 37.91% in the airline, as of the latest available data.
This move comes against the backdrop of ongoing adjustments within the promoter groups of IndiGo, with plans announced earlier by co-founder Rakesh Gangwal’s group to further trim its stake in the airline. Promoter shareholding in IndiGo stood at 57.29% as of March.
IndiGo’s dominance in the Indian aviation sector is evident, holding approximately 60.6% of the domestic market share, according to recent data from the Directorate General of Civil Aviation (DGCI).
In response to the transaction, Bhatia expressed confidence in IndiGo’s trajectory, highlighting its competitive resilience and long-term prospects. Emphasizing the robustness of the company’s strategy and management, he reiterated his commitment to overseeing the airline’s continued growth.
As India continues to emerge as one of the world’s fastest-growing aviation markets, Bhatia sees ample opportunities for expansion, underpinned by IndiGo’s strategic direction and operational excellence.
Despite the news of the stake sale, InterGlobe Aviation’s stock experienced a moderate decline of 4.3% at the close of trading, reflecting investor sentiment amidst the strategic realignment within the company.
