Rakesh Gangwal, the co-founder of IndiGo, has sold almost 2.75% of his shares amounting to INR 2,005 crore. Details of the buyers were not provided by the National Stock Exchange; however, shares of IndiGo fell by a big margin end of the day following this transaction.
After his fallout from IndiGo, Gangwal has said he would pare back his holding over the next five years. He said: “I am a long-term shareholder for more than 15 years and it is only natural to someday think about diversifying one’s holdings. Accordingly, my current intention is to slowly reduce my equity stake in the company over the next five-plus years. While new investors should benefit from the potential future growth in the company’s share price, a gradual reduction of my stake should also allow me to benefit from some of the upsides. Like any plan, future events may impact my current thinking.”
At the current market prices, Gangwal’s holding in IndiGo is valued at around INR 26,500 crore.
Differences between Bhatia and Gangwal came forward in 2019 after Gangwal wrote a letter to the Securities and Exchange Board of India (Sebi) seeking its intervention to address corporate governance issues.
Post his resignation, Rahul Bhatia took over as the Managing director for five years.