Promoters of IndiGo airlines, the Bhatia family, are reportedly likely to sell a 2 per cent stake in the company for approximately Rs 3,292.3 crore ($394 crore) through a block deal. This is the first time the promoter-family is selling their shares in InterGlobe Aviation post the IPO.
According to a report by The Economic Times, that accessed the term sheet, which indicates that Rahul Bhatia held a 37.9 per cent stake in the company as of March 2024. The Bhatia family along with the Gangwal family hold a 57.29 per cent stake in the company.
There will be a lock-up period of 365 days for the seller, the Bhatias, due to regulatory prohibitions, as per the term sheet.
The Bhatias are offering 7.71 million shares at a price range of Rs 4,266-4,562.55 per cent, which was the closing price on Monday. Citigroup is the banker for the deal.
InterGlobe Aviation’s net profit jumped 106 per cent year-on-year (YoY) to Rs 1,894.80 crore for the March quarter compared with Rs 919.20 crore in the same quarter last year.
The airline expected June quarter capacity in terms of ASKs (available seat kilometres) – a measure of the airline’s carrying capacity to generate revenue – to increase 10-12 per cent compared to the first quarter of fiscal year 2024.
The airline’s revenue from operations climbed 25.9 per cent YoY to Rs 17,825.30 crore for the fourth quarter, it said. Excluding foreign exchange loss, profit amounted to Rs 2,060 crore compared with a profit of Rs 666.40 crore YoY.