Shares of InterGlobe Aviation, the parent company of the country's largest airline IndiGo, fell sharply in Thursday's trade after losing nearly 3% in the last two trading sessions.
The stock began today's trading day at ₹1,922 apiece, 3.22% lower compared to the previous closing price of ₹1,986, and skidded further to hit an intraday low of ₹1,893, down 4.6%, a six-week low.
1.7 crore shares of the company changed hands in a block deal window, as per reports. The buyers and sellers, however, were not known immediately.
Earlier, reports said that Shobha Gangwal, wife of IndiGo co-founder Rakesh Gangwal, was looking to sell a 4% stake worth ₹2,930 crore in the parent company InterGlobe Aviation through a block deal on Thursday.
The offer floor price for the sale was set at Rs. 1,875 apiece, a 5.6% discount on InterGlobe's closing price on Wednesday.
Earlier in September last year, the Gangwal family sold a 2.8% stake in the company for approximately $250 million, seven months after Rakesh Gangwal resigned from the company's board and said he would cut his stake in the airline over five years.
Gangwal and Rahul Bhatia, who co-founded IndiGo in 2006, fell out in early 2020 when the former sought to modify certain rules in the company's articles of association.
According to Trendlyne shareholding data, Rakesh Gangwal holds a 13.4% stake, and his wife Shobha Gangwal owns a 7.04% stake, while their Chinkerpoo Family Trust holds a 13.50% stake in the company.
For the October-December quarter of FY23, InterGlobe Aviation reported a net profit of ₹1,422.6 crore, fuelled by robust travel demand. The company had reported a net profit of ₹129.8 crore in the same period a year ago.
The total revenue from operations during the quarter came in at ₹15,410. crore, a jump of 62.55% YoY from ₹9,480.1 crore in Q3FY22.
Excluding foreign exchange losses, the airline reported a profit of ₹2,009.1 crore in the latest December quarter compared to ₹125.2 crore in the year-ago period.
According to the data from the aviation regulator DGCA, the budget carrier had a domestic market share of 55.7% in the December quarter.
21 analysts polled by MintGenie on an average have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
