The shares of Interglobe Aviation Limited (IndiGo) opened at Rs 1,959 on NSE and declined by 2.3 percent to reach an intraday low of Rs 1,914 on Thursday.
The scrip declined in the early hours of Thursday as about 10.8 million shares were listed for sale for Rs 1,996 crore via a Block deal, according to NSE data. The floor price was set as Rs 1,850 per share which is a discount of 6.4 percent to yesterday’s closing price of Rs 1,977. The parties remain unknown.
In addition to that, Rakesh Gangwal, co-founder of IndiGo, will sell up to a 2.8% stake in the company through a block deal that will amount to $250 million. Shares of InterGlobe Aviation will be offered to institutional buyers at a floor price of ₹1,850 apiece.
Investment banks Morgan Stanley India Co. Pvt. Ltd, Goldman Sachs (India) Securities Pvt. Ltd and J.P. Morgan India Pvt. Ltd is the broker of the block trade. The block trade will be executed on 8 September.
In the past five days, the stock has declined by approximately 6 percent. In the past six months, the stock has added 21 percent.
InterGlobe Aviation Ltd., doing business as IndiGo, is an Indian low-cost airline that is the largest airline in India by passengers carried and fleet size, with a 53.5% domestic market share.
In Q1FY23, their revenue stood at Rs 12,855 crores, up 9,850 percent from RS 3,006 which they reported in the same period a year ago. In the quarter under review, their net losses narrowed to Rs 1,064 crores from R 3,174 crores in Q1FY22.
Going forward, the company will be under pressure as the Aviation Turbine Fuel (ATF) prices are on the rise and the rupee has been depreciating. “The Domestic airlines industry is expected to report a net loss of around Rs 15,000-17,000 crore this fiscal due to the global cues, a report by Icra said on Wednesday.
Written by Anoushka Roy
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