**IndiGo Co-Founder Rakesh Gangwal to Sell $801 Million in Shares**
Rakesh Gangwal, co-founder and promoter of IndiGo, plans to divest shares worth $801 million in InterGlobe Aviation Ltd, the parent company of India’s largest airline. This information comes from a term sheet reviewed by industry sources. The share sale is being facilitated by Goldman Sachs (India) Securities Pvt, Morgan Stanley India Co., and J.P. Morgan India Pvt.
Under the revised terms, Gangwal, along with his Chinkerpoo Family Trust, will sell up to 12.1 million shares, which accounts for approximately 3.1% of the company. The offer price is set at ₹5,808, representing a nearly 4% discount compared to the stock’s closing price of ₹6,050 on the National Stock Exchange (NSE) on Tuesday. Following this transaction, Gangwal’s ownership in the company will decrease to 4.71%, while his co-promoter and current managing director, Rahul Bhatia, will hold 35.73%.
As of December 2021, Gangwal owned 36.6% of InterGlobe Aviation, while Bhatia held 37.8%, giving them a combined ownership of 74.78%. Gangwal has been gradually reducing his stake in the airline over recent years, particularly after resolving a public dispute with Bhatia, with whom he co-founded the airline in 2006.
In 2019, Gangwal raised concerns about corporate governance issues, including related-party transactions and the independence of the chairman, leading to a formal complaint to the market regulator, Sebi. In 2022, he stepped down from the board of directors, indicating his intention to reduce his stake from 37% over the next five years while requesting that no unpublished price-sensitive information be shared with him.
Gangwal has previously sold portions of his stake, including 5.83% in April 2024, another 5.83% last August, and 5.7% in May of this year. IndiGo currently commands about 64% of the Indian airline market. Despite facing challenges, including a 20% year-on-year decline in profits to ₹2,176 crore for the June quarter, the airline reported a 6% increase in revenue to ₹21,543 crore during the same period.
Pieter Elbers, CEO of IndiGo, noted that the June quarter was impacted by significant external challenges affecting the aviation sector. He stated, “Despite these industry-wide disruptions, we reported a net profit of ₹21,763 million with a net profit margin of around 11% for the quarter ended June 2025.”
**FAQ**
**What prompted Rakesh Gangwal to sell his shares in IndiGo?**
Gangwal’s decision to sell shares follows a gradual reduction of his stake in the airline, influenced by a previous dispute with co-founder Rahul Bhatia and a desire to streamline his investment in the company.
