Shares of budget airline IndiGo declined slightly in early trading on Thursday after a significant block deal, in which about 2.3 crore shares of InterGlobe Aviation, IndiGo’s parent company, traded for Rs 11,000 crore at a floor price of Rs 4,760 per share.
The block deal saw the sale of nearly 6% of InterGlobe Aviation’s equity, prompting a marginal dip in IndiGo’s stock price.
At 9:15 AM, a block of 22,652,485 shares exchanged hands on the BSE at Rs 4,762.55 per share, with a total of 23.23 million shares traded.
Reports indicate that Rakesh Gangwal, the promoter and co-founder of IndiGo, is likely to be behind the transaction.
Rumors suggested that Gangwal planned to offload about 5.8% of his stake in the company, which stood at 5.89% at the end of the June quarter.
Initially, Gangwal aimed to sell shares valued at Rs 6,750 crore but later revised this amount to Rs 11,000 crore, reflecting his strategic decision to increase the scale of the sale.
This move however follows previous stake reductions by Gangwal as part of his planned exit from the airline.
In other news, the Directorate General of Civil Aviation (DGCA) reported a 4.7% year-on-year growth in domestic air passenger traffic for the January-July period, reaching over 9.23 crore passengers compared to 8.81 crore in the same period last year.
IndiGo led the market with over 5.61 crore passengers, holding a commanding 60.8% market share.
Tata Group’s Air India followed with a 13.6% share and 1.25 crore passengers, while Vistara secured a 9.6% market share with 89 lakh passengers.
IndiGo’s financial performance for the April-June quarter showed a net profit of Rs 2,728 crore, marking an 11.7% decline from Rs 3,090.6 crore in the previous year’s same quarter.
However, the airline’s operational revenue saw a 17.3% increase, rising to Rs 19,570.7 crore from Rs 16,683.1 crore year-on-year.
The stock market response to the block deal and the broader aviation sector’s growth dynamics will continue to be closely monitored by investors and analysts alike.
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