Rakesh Gangwal, the billionaire co-founder of India’s largest airline by market value, has offered to sell part of his family’s stake in Indigo for around $250 million, possibly putting to rest a three-year old dispute between the owners.
The Gangwal family is offering as many as 10.8 million shares in InterGlobe Aviation Ltd at a floor price of Rs1,850 rupees ($23.15) apiece, according to terms of the deal seen by Bloomberg. The floor price represents a discount of 6.5 per cent to Wednesday’s close, according to the terms.
The block share sale may signal an end to the dispute between co-founders and billionaires Gangwal and Rahul Bhatia, which turned ugly in 2019. Getting past the dispute can help one of Asia’s largest airlines focus on recovery after the industry suffered during the pandemic and India’s strict lockdowns.
The terms of the share sale by Gangwal, Shobha Gangwal and the Chinkerpoo Family Trust place a 150-day lock in period on buyers. Goldman Sachs, JPMorgan and Morgan Stanley are the placement agents for the deal.