Two crore shares of InterGlobe Aviation, the parent of India's largest airline IndiGo exchanged hands in multiple block deal on Wednesday, according to data available on the exchanges.

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The number of shares amount to 5 percent of the total equity worth Rs 4,837 crore. Shares exchanged hands at Rs 2,430 per share, which is a 4.6 percent discount to Monday's closing price of the stock.

CNBC-TV18 had reported on Tuesday that the Rakesh Gangwal family may sell shares up to Rs 3,735 crore in the company, citing sources privy to the developments. The floor price for the transaction was set at Rs 2,400 per share.

As of June 30, 2023, the Gangwal family held a 29.72 percent stake in InterGlobe Aviation Ltd.

Post this transaction, the Gangwal family will have a 150-day lock-in period before the next transaction. A lock-in period refers to that period for which the investments cannot be sold or redeemed. A five-month lock-in would mean that the Gangwal family will not be able to sell any further stake until January 2024.

Morgan Stanley, JPMorgan, and Goldman Sachs are the investment banks advising the Gangwal family on the block deal.

In September last year, Rakesh Gangwal and his wife Shobha, had divested a 2.74 percent stake in the company for Rs 2,005 crore via open market transactions. In February this year, the Gangwal family sold a 4 percent stake for Rs 2,900 crore via a block deal.

Shares of InterGlobe Aviation have opened 4.2 percent lower at Rs 2,442.70.

First Published:Aug 16, 2023 9:18 AM IST