Big Sale: IndiGo Co-Founder Rakesh Gangwal Offloads Stake for $800 Million

IndiGo Co-Founder Rakesh Gangwal to Sell Stake Worth $800 Million

In a major move, Rakesh Gangwal, co-founder of India’s largest airline IndiGo, is selling a part of his stake in the company for a whopping $800 million. This was reported by CNBC-TV18 on Monday, citing sources.

Gangwal plans to offload up to 3.4% of his shares through a block deal, which will see the shares sold at a floor price of 5,175 rupees each. This price represents a 4.5% discount compared to IndiGo’s closing price on Monday, which was 5,420 rupees.

IndiGo has not yet issued an official statement regarding this development.

Background: Gangwal and Bhatia’s Dispute

Gangwal’s decision to sell shares comes after a long-standing dispute with IndiGo co-founder Rahul Bhatia. The two had clashed over changes to the company’s articles of association in 2022, leading to Gangwal stepping down from IndiGo’s board.

Since then, Gangwal and his family have been gradually reducing their ownership in IndiGo. Their stake, which stood at 36.6% in 2022, has now been trimmed down to 13.5%.

Gangwal’s Other Ventures

Apart from IndiGo, Gangwal also chairs the board of directors of the prominent U.S. budget carrier Southwest Airlines.