Shares of IndiGo, India’s largest airline by market share, surged over 2 percent on June 16 after promoter group InterGlobe Enterprises denied reports of a stake sale worth Rs 8,600 crore via block deals. The clarification brought relief to investors following earlier speculation surrounding the sale of a 4 percent stake in the budget airline.

Clarification from InterGlobe Enterprises

In an official statement released on Sunday, InterGlobe Enterprises said it remains firmly committed to overseeing IndiGo’s long-term goals. It categorically denied any ongoing discussions or plans regarding a stake sale and called the news “speculative and without factual basis.”

The statement read:

“InterGlobe Enterprises is firmly committed to oversee IndiGo’s long-term plans and currently, the airline’s next phase of growth remains our primary focus.”

The denial came after a news report on June 13 claimed that Rahul Bhatia, co-promoter and Managing Director of InterGlobe Enterprises, was planning to offload up to 4 percent stake through a block deal that could raise nearly $1 billion or Rs 8,600 crore.

Shareholding Pattern and Previous Stake Sales

As of March 2025, promoters and promoter group entities collectively held 49.27 percent in InterGlobe Aviation, the parent firm of IndiGo.

• InterGlobe Enterprises held 35.71 percent

• Rakesh Gangwal and related entities held 13.53 percent

• Rahul Bhatia personally held 0.1 percent stake

Notably, co-founder Rakesh Gangwal and related entities recently sold a 5.8 percent stake in IndiGo on May 27, 2025. This move is part of Gangwal’s previously announced plan to gradually exit from the company, which was first revealed in 2022. He has significantly reduced his holding in the airline since then.

Market Reaction and Analyst Outlook

Following InterGlobe’s statement, IndiGo shares rose sharply by over 2 percent in the second half of June 16’s trading session. Investors welcomed the clarity amid concerns over ownership changes and the implications of large block deals on the stock’s supply-demand dynamics.

Jefferies, the global brokerage, reaffirmed its bullish stance on IndiGo. It maintained a ‘buy’ rating on the stock with a target price of Rs 6,300 per share, implying an upside of nearly 20 percent from the previous close of Rs 5,262 per share.

In its latest note, Jefferies cited:

“We remain positive on IndiGo’s growth trajectory. The airline is well-positioned to benefit from India’s expanding aviation market, strong domestic demand, and operational efficiencies. We see upside potential in the near-to-medium term.”

Broader Industry Context

India’s aviation sector has seen a strong post-pandemic recovery, with IndiGo continuing to dominate the market in terms of passenger share and operational scale. The company is also expanding its international footprint and adding new aircraft to its fleet, aiming to cater to both leisure and business travel segments.

Investors had been jittery about a potential large block deal that could temporarily dampen the stock price. The latest statement by the promoter has helped ease investor anxiety, especially after a period of high stock market volatility.

Conclusion

The denial by InterGlobe Enterprises has reassured stakeholders that no stake dilution is imminent, and the promoters remain invested in IndiGo’s future. The share price reaction and continued backing by analysts like Jefferies indicate renewed investor confidence in the airline’s long-term growth story.

As IndiGo continues its fleet expansion, improves operational metrics, and focuses on international growth, the stock remains a top pick among aviation plays in the Indian equity markets.

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