Indigo stock dips as largest shareholder plans to offload 2% stake

The largest shareholder of IndiGo Airlines, Interglobe Enterprises, is planning to sell a 2% stake in the Indian low-cost carrier for $394 million, according to a timesheet seen by Reuters.

This is the first stock sale in at least four years in which the company’s stock has appreciated significantly.

InterGlobe Enterprises holds a 37.75 per cent stake in IndiGo’s operator InterGlobe Aviation and is selling its stake at its base price of Rs 4,266, the term sheet showed.

That's a 6.6 per cent discount to the stock's closing price on Monday. The stock fell 3.6 per cent to Rs 4,403.40 on Tuesday.

InterGlobe Enterprises, led by Indigo co-founder Rahul Bhatia, will no longer be able to sell any shares for 365 days, the term sheet indicated.

Another co-founder of Indigo, Rakesh Gangwal and his wife Shobha reduced their stake by selling more shares over a year ago.

However, IndiGo stock has surged nearly 85 per cent in the past year, reaching multiple highs.

InterGlobe Enterprises operates in the hospitality and logistics sectors.

The airline recently partnered with US-based Archer Aviation to launch electric air taxis in India.

According to state-owned stock exchange data, about 1.1 million IndiGo shares changed hands through block trades on Tuesday, all of which were reduced to the final closing price but above the target price.

IndiGo has more than 1,000 aircraft on order from Airbus and is planning long-haul flights for later this year.

Citigroup is the sole broker for the deal.