Indigo faces some turbulence

Shares of InterGlobe Aviation, the parent company of IndiGo, fell nearly 5% in early trade to Rs.5754.40,  after a large block deal saw around 3.1% equity exchanged on the exchanges.

While the identities of the buyers remain undisclosed, market participants indicated that the Gangwal family, co-founders and key shareholders in the airline, were likely behind the sale. The family has steadily pared its stake over the past two years following co-founder Rakesh Gangwal’s resignation from the company’s board in 2022.

As of the June 2025 shareholding pattern, the Gangwal family collectively held about 25.2% in InterGlobe Aviation. Today’s block deal is seen as part of their gradual monetisation strategy.

The Gangwals, who co-founded IndiGo with Rahul Bhatia’s InterGlobe Enterprises, have had a history of governance-related disputes with the Bhatia group. While the disagreements never disrupted operations, Rakesh Gangwal’s exit from the board marked a turning point, after which the family began systematically reducing its holding.

Analysts noted that today’s stake sale is unlikely to impact IndiGo’s business fundamentals, given the airline’s strong passenger demand, capacity expansion, and fuel price tailwinds. However, persistent promoter offloading could create a near-term overhang on the stock, even as higher free float may improve liquidity and broaden institutional participation.