The recent block deal involving InterGlobe Aviation Ltd., the parent company of IndiGo, signals a significant move in the ownership structure, primarily attributed to co-founder Rakesh Gangwal’s stake reduction. On Tuesday, May 27, the stock market witnessed a major transaction where 2.26 crore shares worth approximately ₹11,928 crore exchanged hands. This volume represents about 5.8% of InterGlobe Aviation’s total equity, making it one of the largest single-day block deals for the airline this year.

Background of the Block Deal

The block deal was initially pegged at ₹6,831 crore, but strong market demand led to an upsizing, pushing the deal value beyond ₹10,000 crore. The shares were transacted at an average price of ₹5,260.5 per share, with the floor price set at ₹5,175. These figures highlight strong investor interest in the aviation giant despite market fluctuations.

Though the buyers and sellers were not officially disclosed, media reports, including CNBC-TV18, had earlier indicated Rakesh Gangwal’s intent to offload about 3.4% equity through this deal. Given the block deal’s size, it’s reasonable to infer that Gangwal has likely reduced his stake beyond this initial figure.

Rakesh Gangwal’s Stake Before and After

Before the deal, Gangwal personally held about 5.3% of InterGlobe Aviation shares. Additionally, the Chinkerpoo Family Trust, associated with him, owned 8.23%. This collective stake signified a substantial holding in the company’s equity. With this block deal, Gangwal has trimmed his personal exposure to the company, signaling either a strategic diversification or capital reallocation move.

One important factor for the seller is the 150-day lock-in period, during which no further shares can be sold, providing a temporary cap on immediate further divestment.

Market Reaction and Share Price Movement

Post the block deal, InterGlobe Aviation’s shares experienced a decline of 2.4%, trading at ₹5,286.5. Despite this dip, the stock has exhibited strong performance, rising approximately 15% so far in 2025. The block deal reflects not only investor appetite for the airline but also highlights the evolving shareholding pattern as founding members adjust their portfolios.

Significance of the Transaction

This stake sale is notable because it reflects changes in ownership dynamics within India’s largest airline, which has dominated the Indian skies for years. Gangwal’s stake reduction could have several interpretations, including:

• Raising liquidity for personal or strategic investments elsewhere.

• Diversifying holdings amid an evolving aviation industry landscape.

• Responding to market conditions post-Covid recovery phase.

What This Means for Investors

For market participants and investors, the block deal provides important signals:

• Large stake sales can sometimes introduce short-term volatility but may stabilize over time.

• The lock-in period ensures limited immediate further selling, which can ease market concerns.

• The strong demand and upsizing of the deal value indicate investor confidence in InterGlobe Aviation’s long-term prospects.

Conclusion

In summary, the block deal involving 2.26 crore shares of InterGlobe Aviation worth nearly ₹12,000 crore is a pivotal moment in the company’s stock market journey this year. The transaction likely marks a further stake reduction by co-founder Rakesh Gangwal, amid strong investor demand and rising share prices in 2025. The event underlines evolving ownership trends in India’s aviation sector and will be closely watched by stakeholders and market watchers alike.

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