Block deal: IndiGo shares tank 4% if turnover is high; InterGlobe Enterprises likely seller

Shares of InterGlobe Aviation Ltd (IndiGo) fell over 4 percent during the trading session on Tuesday following a reported block deal by the promoter. Promoter Interglobe Enterprises has reportedly sold a 2 percent stake in the low-cost carrier.

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According to various media reports, InterGlobe Enterprises, led by Rahul Bhatia, was looking to sell 77 lakh shares worth $394 million at a base price of Rs 4,266 per share, reflecting a discount of 7 percent from the previous closing price of Rs 4,566.60 at Monday. NSE.

As of 9.24 am on Tuesday, over 79.98 lakh shares of IndiGo worth Rs 3,493.41 crore were traded on BSE. Similarly, over 16.57 lakh shares worth over Rs 733.94 crore are exchanging hands simultaneously on the National Stock Exchange (NSE). The heavy volumes suggested that the block axis had been performed.

Amid heavy trading volumes, shares of InterGlobe Aviation fell 4.42 per cent to Rs 4,361 on Tuesday, for a total market capitalization of just under Rs 1.70 lakh crore. However, Business Today was unable to independently obtain the details of buyers and sellers at the time of writing this report.

According to stock exchange documents, Interglobe Enterprises currently owned a 37.75 percent stake in Interglobe Aviation as of March 31, 2024. The stock price has risen about 60 percent in the past six months due to rising demand for air travel across the country. Citi was the banker for the deal.

Due to legal restrictions, Rahul Bhatia is prohibited from selling additional shares in the market for a period of at least one year. Besides Interglobe Aviation, Bhatia also has business interests in the hotel and artificial intelligence segments, which may require additional capital, the reports said citing sources.

InterGlobe Aviation reported a net profit of Rs 919.2 crore, while revenue from operations rose 26 percent year-on-year (year-on-year) to Rs 17,825.3 crore in the March 2024 quarter. Ebitda for the quarter rose by 48.7 percent to Rs 4,412.3 crore in the fourth quarter of this fiscal, with margins standing at 24.8 percent.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.