
IndiGo promoter Rakesh Gangwal is likely to sell another tranche of IndiGo shares soon, said a report on Monday.
Roadshows are likely underway to gauge investor interest, reported CNBC TV18 citing sources.
Gangwal family held 25.2% stake in the country's largest domestic airline as of December 31, 2023.
The report said Gangwals' 150-day lock-in period for further stake sale ends on February 13 and Gangwals sold a total of over 12% stake in last three tranches.
In September 2022, Gangwals sold 2.7% stake at Rs 1,850 per share, in February 2023, they sold 3.7% stake at Rs 1,887 per share and in August 2023, they sold 5.8% stake at Rs 2,400 per share.
On Monday IndiGo's shares pared gains after the report emerged about a likely stake sale.
At 1500 hours on Monday, IndiGo's scrip on BSE was trading 2% higher at Rs 3,189.2 as against day's high of Rs 3,300.
Remaining profitable for the fifth straight quarter, the country’s largest airline IndiGo on Friday reported more than doubling of its profit after tax to Rs 2,998.1 crore in the 2023 December quarter while more than 70 planes of the carrier are grounded due to Pratt & Whitney engine issues.
Helped by higher capacity and increased passenger traffic, InterGlobe Aviation Ltd, the parent of IndiGo, saw its profit after tax jump in the third quarter of the current fiscal from Rs 1,422.6 crore in the year-ago period.
Excluding foreign exchange loss, the company’s profit stood at Rs 3,049.1 crore in the latest quarter under review compared to Rs 2,009.1 crore in the same period a year ago, according to a release.
The company’s total income in the third quarter of the current fiscal rose to Rs 20,062.3 crore from Rs 15,410.2 crore in the same period a year ago.
“For the third quarter of financial year 2024, we reported a profit after tax of 30 billion rupees with a profit after tax margin of 15.4 per cent. With these five consecutive quarters of profit we continue to recover from the losses of Covid and have now become net worth positive again,” IndiGo CEO Pieter Elbers said.
For the December quarter, IndiGo said, “Our passenger ticket revenues were Rs 171,572 million, an increase of 30.3 per cent and ancillary revenues were Rs 17,600 million, an increase of 23.8 per cent compared to the same period last year”.
In the December quarter, capacity increased by 26.8 per cent while the number of passengers rose by 23.4 per cent to 27.5 million.
“Yield increased by 2.0 per cent to Rs 5.48 and load factor improved by 0.7 points to 85.8 per cent,” the release said.
In the fourth quarter, the airline expects a capacity growth of 12 per cent.
At the end of December 2023, the airline’s total cash balance was at Rs 32,428 crore comprising Rs 19,199.6 crore of free cash and Rs 13,228.5 crore of restricted cash.
“The year 2023 was marked by numerous milestones. We served 100 million plus passengers in a calendar year and joined the select club of global carriers operating at this scale. We started operating 2,000 plus daily flights to 118 destinations,” Elbers said in the release.
With inputs from PTI