Budget carrier Indigo is back in the news again. This time because of a stake sale. The Rahul Bhatia-led Interglobe Enterprises, having a stake of 37.75% in Interglobe Aviation, which runs passenger airline Indigo, is in the process of selling a part of its shareholding. It has been reported by Reuters that the stake is 2% and that in monetary terms it adds up to $394 mn. Indigo is India’s biggest airline.
The stakeholding will be sold at Rs 4266 per share. The stake is being sold at a 6.6% discount to the share price ruling on Monday. Notably, on Tuesday, the stock shed as much as 3.6% and closed at Rs 4403.40. On June 10, the share price had jumped 4.37% to Rs4,562.55.
The stake sale by Interglobe Enterprises has come after a gap of some 4 years and the data shows that the value of the shares have virtually quadrupled over this period and over the last year it climbed around 85%.
According to a MoneyControl report the investment banker for this stake sale is Citi. It also added that there will be a 365-day lock-up period for the seller during which no other such sale can be done.
Indigo expansion
Last week it was reported by Reuters that IndiGo will focus its next phase of international expansion on lesser-known destinations. CEO Pieter Elbers said during an interview in Dubai, said, “With the growing desire and aspirations of Indians to fly international I think we have a great opportunity for also the more unknown places.”
IndiGo had originally planned to deploy 30% of its flying capacity – measured by available seats per kilometer – into international markets by 2030. Elbers said it will now meet this target sooner.
IndiGo had reported record profit of close to $1 billion for the financial year 2023-2024.
According to analysts, the airline’s push into central Asia has helped it capture a growing pool of young fliers that aspire to travel overseas but are not ready to spend the money needed to see Europe.
Having said that, IndiGo is also looking to appeal to the more affluent fliers by offering business class on some domestic flights.
Interglobe Enterprises is selling its stake in Interglobe Aviation valued at $394 million. Companies Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
