52 Stake Offloaded For Rs 8400 Crore

Gangwal Family Trust Sells Stake in IndiGo via Block Deal

5.2% Stake Offloaded for Rs 8,400 Crore

Morgan Stanley Acquires Majority of Stake

The Gangwal family trust has divested a 5.2% stake in IndiGo, India's largest airline, through a block deal worth approximately Rs 8,400 crore.

Morgan Stanley, the global investment bank, acquired a significant portion of the stake, further solidifying its presence in the Indian aviation sector.

Key Details of the Transaction

* **Stake Sold:** The Gangwal family trust sold 5.2% of IndiGo's shares, equivalent to 38.3 million shares. * **Transaction Value:** The block deal was valued at approximately Rs 8,400 crore, based on IndiGo's current market capitalization. * **Buyer:** Morgan Stanley emerged as the primary buyer of the stake, acquiring a substantial portion of the shares. * **Purpose:** The proceeds from the stake sale will be utilized by the Gangwal family trust for various investment purposes.

Implications for IndiGo

* **Increased Institutional Ownership:** Morgan Stanley's acquisition of the stake strengthens institutional ownership in IndiGo, providing stability and confidence to investors. * **Potential Share Price Impact:** The block deal may have a short-term impact on IndiGo's share price, but analysts believe it could lead to long-term growth. * **Leadership Changes:** There is no immediate indication of any changes in IndiGo's management or operations as a result of this transaction.

Impact on the Indian Aviation Sector

* **Consolidation Trend:** The block deal aligns with the ongoing consolidation trend in the Indian aviation sector, with larger airlines acquiring stakes in smaller carriers. * **Increased Competition:** The entry of Morgan Stanley as a significant stakeholder could intensify competition in the Indian aviation market, leading to benefits for consumers. * **Foreign Investment Boost:** The transaction highlights the continued interest of global investors in the Indian aviation sector, which is expected to grow significantly in the coming years.

Sources

* [Business Standard](https://www.business-standard.com/article/companies/gangwal-family-trust-offloads-5-2-in-indigo-through-rs-8-400-crore-block-deal-123031600558_1.html) * [The Economic Times](https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/indigo-stake-sale-morgan-stanley-buys-bulk-of-gangwal-familys-5-2-stake/articleshow/90789741.cms?from=mdr) * [Reuters](https://www.reuters.com/markets/deals/indias-indigo-says-gangwal-family-trust-sell-52-stake-rs-8400-crore-2023-03-16/)