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IndiGo shares plunge over 4% after 11 million shares traded in block deal

BNE News Desk


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Mumbai: Shares of InterGlobe Aviation, the parent company of IndiGo airlines, dropped 4.4 percent to Rs 4,361 apiece on the BSE on Tuesday following a large block deal. Nearly 11 million shares changed hands on the counter. 

As per reports, at 10:20 am, the share price was down 3.46 percent at Rs 4,404.75 on the BSE, contrasting with a 0.26 percent rise in the benchmark BSE Sensex.

Notably, earlier in the morning, around 7.8 million shares had been traded at Rs 4,417.5 per share. This figure rose to 10.8 million shares on both the NSE and BSE by the time of this report.

The buyers and sellers involved in the deal could not be immediately identified. However, reports indicate that Rahul Bhatia-led Interglobe Enterprises was likely behind the sale of a 2 percent stake, or 7.7 million shares, in the low-cost carrier, with a floor price set at Rs 4,361 per share.

Financially, InterGlobe Aviation reported a consolidated net profit of Rs 1,894.82 crore for the fourth quarter of FY24, up 106 percent from Rs 919.20 crore in the same period last year. However, sequentially, net profit fell by 36.8 percent from Rs 2,998.12 crore in Q3. Furthermore, revenue from operations increased by 25.9 percent year on year to Rs 17,825.27 crore, up from Rs 14,160.6 crore, but fell by 8.4 percent sequentially from Rs 19,452.148 crore in the third quarter.

As of the end of the March quarter, Interglobe Enterprises held a 37.15 percent stake in IndiGo, while Rahul Bhatia personally held a 0.01 percent stake. This sale marks the first instance of the Bhatia Family divesting their stake in InterGlobe Aviation post-IPO. The stake sale by InterGlobe Enterprises follows a series of sales by co-promoter Rakesh Gangwal, who held a 5.89 percent stake at the end of Q4FY24. Following the block deal, the seller is expected to face a lock-up period of 365 days.

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BNE News Desk