The Gangwal family may sell 5-8 percent of its stake in Interglobe Aviation, the parent company of IndiGo airlines, via a block deal, people in the know told CNBC-Awaaz.

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Brokers have held talks with certain funds for the deal, which is likely to be worth Rs 5,000 crore to Rs 7,000 crore, sources said.

The block deal will possibly be of Rs 5,000 to Rs 7,000 crore and the brokers are in discussions with certain fund houses for the same, the sources said.

On February 16, 1.7 crore shares of 4.4 percent equity worth Rs 3,221 crore of InterGlobe Aviation, had changed hands in a block deal.

In September last year, the airline's co-promoter Rakesh Gangwal and his wife Shobha, had divested a 2.74 percent stake in the comany for Rs 2,005 crore via open market transactions.

The family's lock-in period for the sale of further shares ends on July 15.

A block deal is a single transaction, with a minimum value of Rs 5 crore of minimum quantity of five lakh shares, between two parties, in a separate trading window. Such deals occur at the beginning of trading hours.

Shares of InterGlobe Aviation have gained nearly 30 percent since its February 16 block deal.

Rakesh Gangwal had resigned from the company's board of directors in February last year, stating that he would gradually reduce his equity stake over the next five years.

He had co-founded the low-cost carrier IndiGo airlines with Rahul Bhatia.

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First Published:Jun 12, 2023 12:14 PM IST