Interglobe Enterprises Private Ltd, led by Rahul Bhatia, is set to sell stake worth $394 million in Interglobe Aviation, the parent company of Indigo Airlines, through a block deal, Moneycontrol reported citing multiple sources, putting the focus on its share price.
The Interglobe Aviation share price was trading in red, down 3.31 per cent at ₹4411.50 on June 11, at 9:45 am, on BSE. The company enjoys a market capitalisation of ₹1,76,105.16 crore as BSE.
The sale’s floor price is set at ₹4,266 per share, a 6.5 per cent discount from Interglobe Aviation’s closing price of ₹4,562.55 on June 10. Citi is acting as the investment banker for this deal, which includes a 365-day lock-up period for the seller, the report added.
This is the first time in many years that Bhatia is looking to unlock value and realize returns by offloading approximately 2 per cent of his stake. As of now, Interglobe Enterprises holds a 37.75 per cent stake in Interglobe Aviation, as per the report.
“The deal has been launched, and Bhatia is looking to offload around 2 per cent stake. This is the first time in many years that he is looking to unlock value and pocket some returns,” said one of the sources, as quoted by Moneycontrol.
Also Read | Elon Musk gave internet to Amazon’s remote tribe; now they are addicted to social media, porn
Livemint could not independently verify this news development.
Also Read | Chandan Taparia recommendations: How to trade Hero Motocorp, Ultratech Cement, Cipla shares on June 11?
Significantly, the terms of the deal include a 365-day lock-up period for the seller, a third source said. Furthermore, Rahul Bhatia’s business portfolio extends beyond Interglobe Aviation, encompassing investments in the hotel and artificial intelligence sectors, which might require further funding. In April, Bhatia introduced the AI company AionOS in partnership with former Tech Mahindra MD CP Gurunani, as per the report.
Also Read | Best mini refrigerators: Our top 8 options for exceptional cooling and food preservation
Interglobe Aviation and Citi were not immediately available for comment, as per the Moneycontrol report.
Interglobe Aviation shares have skyrocketed by an impressive 80 per cent over the past year. This surge is largely attributed to its strategic foothold in the underdeveloped Indian aviation market.
3.6 Crore Indians visited in a single day choosing us as India’s undisputed platform for General Election Results. Explore the latest updates here!
Download The Mint News App to get Daily Market Updates & Live Business News.
Published: 11 Jun 2024, 08:47 AM IST
