IndiGo Shares Fall 4% As Rakesh Gangwal Sell stake Worth 2,000 crore

When co-founder Rakesh Gangwal decided to sell shares worth 2,000 crore ($250 million), IndiGo's stock plummeted by nearly 4% in early trade. Following his resignation from the board of directors of the company six months ago, Gangwal has decided to lower his ownership in India's largest airline. 10.8 million shares will be sold in the block deal, with a floor price of $1,850 per share.

Rahul Bhatia, the other co-founder, currently owns a 37.8% share in IndiGo, while Rakesh Gangwal and family currently possess 36.61%. Gangwal's ownership will drop to 33.81% following the sale. At the moment, Bhatia's stake is worth 28.800 crore while Gangwal's stake is worth 27.900 crore.

Gangwal will continue to occasionally sell interests, putting pressure on the stock. Gangwal has a five-year plan to reduce his IndiGo ownership. In a statement earlier this year, Gangwal stated,  “My current intention is to slowly reduce my equity stake in the company over the next five-plus years,”

Given that he also intends to gradually sell his stock in the company over the course of the next five or six years, Gangwal claimed that his resignation from the board of directors was necessary to avoid a conflict of interest. He has, however, provided himself with a way out by stating that he might return to becoming a director in the future.