Indigo tumbles down

Inter Globe Aviation or Indigo as we know the airline company is among the top five losers on the BSE today. From yesterday’s close of Rs.1181.35, it went down to the day’s current low point at Rs.1146. It has recovered from this level to Rs.1155 levels but remains firmly in the red.

The stock is down as promoters Offer for sale begins today. To adhere to SEBI’s rule of maximum 75% promoter holding, promoters of Indigo are selling stake.

Acquire Services Pvt. Ltd plans to sell about 8 million shares while IGE (Mauritius) Pvt. Ltd will offload 3.2 million shares in a stock market auction on Wednesday and Thursday. The shares will be sold at a floor price of Rs1,130 each, much lower than yesterday’s close of Rs.1181.

At end of Sept’17 promoters stake stood at 77.91% and now this combined stake sale of 2.91% will bring it down to the required 75%.

The stake sale will fetch the promoters Rs.1245 crore.