InterGlobe Aviation block deal: Gangwals to sell 3.5% stake in IndiGo; target prices

Shares of InterGlobe Aviation Ltd (IndiGo) are in focus today as the Gangwal family is reportedly looking to sell 3.5 per cent stake in India's largest airline via block deals. IndiGo shares have climbed 18 per cent in 2025 so far and 28 per cent in the past six months.

The total block deal size is said to be $800 million or just over Rs 6,800 crore at a floor price of Rs 5,175, a 4.5 per cent discount to the prevailing market price. Rakesh Gangwal and The Chinkerpoo Family Trust could be the sellers.  

As of March 31, 2025, the Gangwal family held a 13.53 per cent stake in IndiGo. The latest planned sale represents another step in their phased exit from the airline, which Rakesh Gangwal co-founded with Rahul Bhatia in 2006. Just three years ago, their holding in the company was nearly 37 per cent. MOFSL noted that IndiGo has adopted a completely different operational strategy after Pieter Elbers joined the company as the new CEO in September 2022. 

"He has over 30 years of experience working at different positions at KLM Royal Dutch Airlines. His wealth of experience has not only helped IndiGo compete with global majors but also consistently increase its market share in the domestic market. However, this could also pose a ‘key man’ risk," it said.

IndiGo serves over 10 crore passengers and adds one aircraft a week (on average). It has expanded its international share to 30 per cent in FY25 of Available Seat Kilometers (ASK) through strategic airline partnerships. The company focuses on strengthening its global presence via loyalty programs and proactive brand-building efforts while continuously refining schedules to enhance reliability and attract a larger share of international travelers.

IndiGo share price targets

The recent rally in IndiGo shares was on account of strong demand and growth in airfare in Q4FY25. This was led by the Maha Kumbh festival, softening crude oil price and strengthening rupee. Passenger volume continued to accelerate for IndiGo in FY25 – a YoY growth of 5 per cent in Q1FY25 to 20 per cent in Q4FY25, Elara Securities said.

"In FY26, expect IndiGo to continue to maintain its edge, led by higher capacity addition," the brokerage said last week.

Nuvama Institutional Equities, however, believes the near-term outlook is challenging for IndiGo, as growth in capacity outpaces demand, hurting yields. 

"Current valuations are unsupportive, but positive factors make the risk-reward balanced. We are trimming FY26E Ebitdar by 3 per cent as we factor in Q1FY26 guidance and the adverse impact on yields and demand due to geopolitical tensions. We are rolling over to FY27E, yielding a 9 per cent rise in target to Rs 5,199; retain ‘HOLD’," Nuvama said.

MOFSL said retained its 'Buy' on the stock with a target of Rs 6,375.