Shares of InterGlobe Aviation Ltd, the parent company of IndiGo, dropped sharply on Thursday after co-founder Rakesh Gangwal and his family trust sold a significant portion of their stake through block deals. The stock fell 4.3% to Rs 5,771.50 on the BSE in intraday trade before recovering slightly, while it was last seen trading over 4% lower on both the NSE and BSE.
The IndiGo Share Price reflects both investor confidence and market volatility. According to a term sheet, the Gangwal family offloaded 1.21 crore shares, representing around 3.1% of the airline’s equity, at a floor price of Rs 5,808 per share.
Many traders closely monitor IndiGo Shares for long-term growth opportunities. The total transaction size is pegged at about Rs 7,027 crore ($801 million). The floor price represented a discount of nearly 4% to IndiGo’s closing price of Rs 6,044.75 on Tuesday.
The stake sale marks yet another step in Rakesh Gangwal’s gradual exit strategy from IndiGo. Once the airline’s co-promoter alongside Rahul Bhatia, Gangwal stepped down from the board in February 2022 following a bitter governance-related dispute.
The recent Rakesh Gangwal Stake Sale has significantly influenced investor sentiment. Since then, he and his family members have been steadily paring down their holdings in India’s largest airline.
The Gangwal family’s total stake in IndiGo has now dropped from 7.81% as of June 2025 to 4.71% post this recent divestment. Additionally, in May of this year, the family trust sold a 5.72% stake for Rs 11,564 crore, and in August, it divested 5.24% for Rs 9,549 crore.
Since 2022, Gangwal and his wife, Shobha Gangwal, have raised over Rs 45,000 crore by reducing their ownership stake.
Past transactions include a 2.74% sale in September 2022 for Rs 2,005 crore, a 4% stake sold by Shobha in February 2023 for Rs 2,944 crore, and a 2.9% sale in August 2023 for over Rs 2,800 crore.
The block deal comes on the heels of IndiGo’s first-quarter FY26 results, where the airline posted a 20% year-on-year decline in net profit to Rs 2,176 crore. This was despite a 4.7% revenue growth, as increasing fuel costs and fluctuating currency impacted earnings.
Substantial passenger numbers boosted the IndiGo Q1 results, reinforcing its market dominance. Operational performance remained robust, with IndiGo achieving a passenger load factor of 84.2% and an on-time performance of 87.1%.
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Analysts indicated that while IndiGo remains operationally the leader in India's aviation market, the overhang of promoter stake sales has resulted in volatility in its stock. With Gangwal now owning less than 5% in the company, the focus will likely shift to how the promoter's exit affects long-term governance and shareholding stability.
Despite the selling pressure, IndiGo remains well-positioned in terms of fleet expansion and market share, though elevated fuel costs and regulatory challenges remain key risks.