IndiGo Faces Increased Scrutiny Amid Stake Sale Rumors
The family of Rakesh Gangwal, co-founder of Indian low-cost carrier IndiGo, has denied reports that it plans to sell a large stake in the airline.
A report by India's CNBC Awaaz business channel on June 12 said that Gangwal would sell a 5-8% stake in the airline, potentially worth up to Rs75 billion ($911 million).
However, IndiGo's parent company InterGlobe Aviation said in a statement on June 13 that it had not received any information from Gangwal or his family about a planned stake sale.
BSE data shows that Gangwal, his wife Shobha and their family trust collectively hold a 29.7% stake in IndiGo.
The Gangwal family have been gradually selling down their stake in InterGlobe in recent years, amid a strained relationship with the company and co-founder and managing director Rahul Bhatia.
In 2021 the company agreed to pay Rs21 million to settle a dispute with India's securities regulator which stemmed from a 2019 document from Gangwal that alleged a series of governance violations.
The denial of the stake sale report comes as IndiGo is facing increasing competition from other low-cost carriers in India. The airline's market share has fallen from 57% in 2019 to 51% in 2022.