IndiGo Shares Drop Over 4% Amid High Turnover Due to Promoter’s Block Deal
Shares of InterGlobe Aviation Ltd (IndiGo) fell by 4.42% to Rs 4,361 on Tuesday, amid heavy trading volumes following a significant block deal involving the sale of a stake by its promoter entity, InterGlobe Enterprises. The decline in stock price left IndiGo with a market capitalization slightly below Rs 1.70 lakh crore.
Reports indicated that InterGlobe Enterprises, led by Rahul Bhatia, sold a 2% stake in the low-cost carrier. This amounted to approximately 77 lakh equity shares worth $394 million, priced at Rs 4,266 per share, representing a 7% discount from the previous close of Rs 4,566.60 on the National Stock Exchange (NSE) on Monday.
By 9:24 am on Tuesday, about 79.98 lakh equity shares of IndiGo, valued at Rs 3,493.41 crore, had been traded on the Bombay Stock Exchange (BSE). Simultaneously, over 16.57 lakh shares worth more than Rs 733.94 crore had exchanged hands on the NSE. The substantial trading volumes indicated the execution of the block deal.
InterGlobe Enterprises held a 37.75% stake in InterGlobe Aviation as of March 31, 2024, according to exchange filings. The stock has surged approximately 60% in the past six months due to increased demand for air travel across India. Citi acted as the banker for the deal.
However, due to regulatory constraints, Rahul Bhatia is prohibited from selling additional shares in the market for at least one year. Beyond his interests in aviation, Bhatia is also involved in the hospitality and artificial intelligence sectors, which might require additional capital, as suggested by sources.
InterGlobe Aviation reported a net profit of Rs 919.2 crore for the March 2024 quarter. Its revenue from operations rose by 26% year-on-year to Rs 17,825.3 crore. The company’s EBITDA surged by 48.7% to Rs 4,412.3 crore, with EBITDA margins reaching 24.8% for the quarter.
While Business Today could not independently verify the identities of the buyers and sellers involved in the deal at the time of reporting, the transaction’s impact on IndiGo’s share price was evident.
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