Indigo flight (File)
The shares of Indigo Airline were witnessing a significant rise since last week, but since the past two, the shares of the company have been eclipsed. On Tuesday too, the company’s stock closed down by 2.59 per cent. While the company’s stock has seen a decline of 4.60 per cent in two days. If it is converted into market cap, then the company has incurred a loss of about Rs 4400 crore in two days. The fall in the shares is being seen from this one news which has not been confirmed yet. That is, the company’s co-founder Rakesh Gangwal and his family are going to reduce their shareholding from the company. By the way, today i.e. on Tuesday, the company’s statement has come that they have no information about Gangwal’s stake sale, but no statement has come from Gangwal’s side.
Giving information, India’s largest airline Indigo said that it is not aware of any plan to sell the stake in the airline of co-founder Rakesh Gangwal’s family. InterGlobe Aviation Limited, which operates Indigo, said in a statement to the stock exchanges that we would like to inform that the company has not received any such information nor has the intention of the co-founder to sell his stake to the company .
This news is floating since two days
The company was asked to clarify on a news report that Gangwal’s family is likely to sell a 5-8 per cent stake in the Indian airline’s parent InterGlobe Aviation Ltd for over $900 million. In September 2022, Gangwal and his family sold 2.8 per cent stake or 1.08 crore shares in InterGlobe Aviation in two separate transactions. In February, Sobha Gangwal reduced her stake in the company by over 4 per cent.
What was said during the design?
In February 2022, Gangwal resigned from the board as a non-executive, non-independent director. The company’s board then unanimously approved the appointment of its co-founder Rahul Bhatia as MD. Gangwal had said in his resignation letter that I am a long term shareholder in the company for more than 15 years. He had said that he would gradually reduce the equity stake in the company over the next five years. Gangwal had said that while the new investors should benefit from a possible future rise in the company’s share price, the gradual dilution of my stake may also give me some benefit. He had said that sometime in the future I might consider participating again as a board member.
How much share of Gangwal and Bhatia
Gangwal co-founded Indigo with Bhatia in 2005. IndiGo is now India’s largest airline with a fleet of over 300 aircraft, with a market share of 57.5 per cent in domestic air traffic. As of March 31, the two promoters held 67.86 per cent stake as against 74.93 per cent in March 2019, and the public shareholding stood at 32.14 per cent as against 25.07 per cent in March 2019. Bhatia and his associates hold the largest stake in the company at 38.14 per cent, followed by Gangwal and his associates at 29.72 per cent. In March 2019, Bhatia and his associates held 38.26 per cent, while Gangwal and his associates held 36.68%. Both the promoters were embroiled in a legal battle since July 2019 over allegations related to corporate governance.
Fall of more than four and a half percent
In two days, the stock of the company has seen a decline of 4.60 per cent in two days. The stock of the company had closed at Rs.2461.80 on the last trading day of last week and today the stock of the company closed at Rs.2348.50. This means that a fall of Rs 113.3 has been seen in two days. Even today, the company’s stock has seen a decline of more than two and a half percent. Even a day before, the company’s stock had fallen by two per cent.
Loss of about Rs 4400 crore in two days
Due to the fall in the shares of the company, the market cap of the Interglobe company has seen a decline of Rs 4400 crore in two days. According to the data, the market cap of the company on Friday was Rs 94,913.98 crore. Whereas today the market cap of the company has become Rs 90,545.74 crore. This means that a loss of Rs 4368.24 crore has been incurred in two trading days.