Shares of InterGlobe Aviation Ltd (IndiGo) cracked more than 4 per cent during the trading session on Tuesday on the back of a reported block deal by the promoter entity. Its promoter entity Interglobe Enterprises was reported to sell 2 per cent stake in the low-cost carrier.
According to various media reports, Rahul Bhatia-led InterGlobe Enterprises was looking to offload 77 lakh equity shares amounting to $394 million at a base price of Rs 4,266 per share, reflecting a 7 per cent discount from its previous close at Rs 4,566.60 on Monday on NSE.
As of 9.24 am on Tuesday, more than 79.98 lakh equity shares of IndiGo, amounting to Rs 3,493.41 crore were traded on BSE. Similarly, more than 16.57 lakh equity shares worth more than Rs 733.94 crore exchange hands on the National Stock Exchange (NSE) at the same time. The heavy volumes suggested that the block delas has been executed.
Amid the heavy trading volumes, shares of InterGlobe Aviation tumbled 4.42 per cent to Rs 4361 on Tuesday, commanding a total market capitalization of little below Rs 1.70 lakh crore. However, Business Today independently could not ascertain the details of buyers and sellers at the time of writing this report.
Interglobe Enterprises owned a 37.75 per cent stake in Interglobe Aviation currently as of March 31, 2024, according to exchange filings. The stock has surged about 60 per cent in the last six months on the back of rising demand of air-travel across the country. Citi was the banker for the deal.
Due to regulatory constraints, Rahul Bhatia is prohibited from selling additional shares in the market for a minimum period of one year. Other than Interglobe Aviation, Bhatia also has business interests in the hotels and artificial intelligence segment which may require additional capital, said the reports citing sources.
InterGlobe Aviation reported a net profit of Rs 919.2 crore, while its revenue from operations increased 26 per cent on a year-on-year (YoY) basis to Rs 17,825.3 crore in the March 2024 quarter. Ebitda for the quarter jumped 48.7 per cent to Rs 4.412.3 crore in the fourth quarter of this fiscal, with the margins coming in at 24.8 per cent.