Tag: Rakesh Gangwal

Newsbreak confirmed, Rakesh Gangwal sells 5.8% in IndiGo for ₹6,785 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The block deal data released by BSE confirms CNBC-TV18‘s newsbreak. As per the disclosure, this latest sale was executed at an average price of ₹3,015.52 per share, surpassing the floor price of ₹2,925 by 3%. The transaction, valued at ₹6,785 crore, was facilitated through a series of block deals

Of a total of 2.25 crore shares sold by Rakesh Gangwal, 21 lakh shares have been bought by Morgan Stanley Asia (Singapore) PTE. However, details regarding the purchasers of the remaining shares remain undisclosed.

Initially, the plan for this tranche was to sell a 3.3% stake, but this figure was eventually elevated to 5.8%. Following this stake sale, Gangwal’s holding in this airline company will reduce to 19.2% from the 25% that he held as of December 2023.

This move is part of a broader strategy by Gangwal, who has been reducing his stake in the company through a series of sales that began in September 2022. To date, he has sold approximately 18% of his stake across four transactions, each at higher prices

Gangwal’s journey of divestment started with a 2.7% stake sale at ₹1,850 per share and was followed by subsequent sales at increasingly higher prices. In February 2023, he pared 3.7% at ₹1,887 per share and in August 2023, sold a 5.8% stake at a price of ₹2,400 per share.

This series of stake sales follows Gangwal’s departure from the board of InterGlobe Aviation in February 2022, when he announced plans to gradually reduce his family’s stake in the company.

Shares of InterGlobe Aviation have seen a surge of 7% from intra-day lows to settle 3.6% higher at ₹3,218.55 apiece at the close of the March 11 session. And, it’s now 2% away from the record level of ₹3,300 per share hit in February this year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo co-founder Rakesh Gangwal likely to sell higher stake of 5.8% – sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Rakesh Gangwal, the co-founder of IndiGo, has reportedly increased his stake sale size from 3.3 percent to 5.8 percent in Interglobe Aviation, the parent company of the budget airlines, according to CNBC-TV18’s sources.

This proposed equity sale aims to amass nearly Rs 6,600 crore, with a floor price set at Rs 2,925 per share, as detailed in the report.

Earlier, on March 7, Moneycontrol had reported, citing individuals familiar with the matter, that Gangwal was mulling over selling a 3.3 percent stake in Interglobe Aviation.

According to the latest exchange data, Gangwal and his family trust collectively hold approximately 25 percent of Interglobe Aviation. Gangwal had relinquished his position on Interglobe Aviation’s board in February 2022 and had unveiled plans to gradually reduce his family’s stake.

Previously, in February, the Gangwal family had divested a 4 percent stake in Interglobe Aviation for Rs 2,900 crore. Subsequently, in September, they sold a 2.8 percent stake valued at Rs 2,000 crore.

The most recent block deal occurred in August 2023, marking the largest one yet, with the Gangwals offloading shares worth $450 million.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indigo’s Rakesh Gangwal invests $20 million in Zetwerk

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Aviation carrier IndiGo’s promoter Rakesh Gangwal has invested $20 million in manufacturing marketplace Zetwerk through Wheelhouse Venture Capital. “His strategic guidance will be crucial in building Zetwerk into a generational company,” the Business-to-Business unicorn said in a statement on March 7.

“We are delighted to share that Mr Rakesh Gangwal has invested 20 million USD in Zetwerk through Wheelhouse Venture Capital. Mr Gangwal, with his extensive experience spanning several decades, brings invaluable insights into building businesses and iconic brands. His strategic guidance will be crucial in building Zetwerk into a generational company,” Zetwerk said.

The deal values Zetwerk at $2.8 billion. Greenoaks is the largest investor followed by Peak XV partners and Lightspeed.

Founded in 2018, Zetwerk became a unicorn in 2021 and has secured a total funding of $674 million till 2023. The company’s unique model enables custom manufacturing of over 9 million parts, ensuring timely delivery to assembly lines for 1,800 clients across 20 countries. Notable clients include industry giants like GE, Tata Group, L&T, and ISRO.

Also Read: Zetwerk’s co-founder advocates incentivised growth in defence and aerospace sectors in India

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Rakesh Gangwal likely to sell another tranche of IndiGo shares soon: Exclusive

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Aviation carrier IndiGo’s promoter Rakesh Gangwal is likely to sell another tranche of his stake in India’s largest airline by market share soon, sources privy to the matter told CNBC-TV18.

The sources also said that the roadshows are likely to gauge investor interest for the shares.

One must remember that Rakesh Gangwal’s 150-day lock-in period for further sale of IndiGo’s shares ends on February 13. Gangwal had previously sold 5.8% stake in the airline at ₹2,400 per share in August last year. The stock is up 33% since then.

Including August last year, Gangwal has sold a total of 12% of his stake in IndiGo in three tranches. Before August last year, he sold a 3.7% stake at ₹1,887 per share in February last year, while the first tranche of 2.7% was sold in September 2022 at ₹1,850 per share.

As of December 31, Rakesh Gangwal’s holding in IndiGo stood at 25.2%.

CNBC-TV18 has written to IndiGo and is awaiting a comment on the same.

For the December period, IndiGo reported a profit for the fifth straight quarter with net profit doubling year-on-year, and revenue growing by 30% from last year.

In an interaction with CNBC-TV18, IndiGo CEO Pieter Elbers said that they are looking at a sixth straight quarter of growth and that the airline is eyeing 20% growth in the current financial year.

Elbers also said that the airline is expecting to add 18 new routes over the next 12-18 months.

IndiGo shares are off the day’s high but are trading 2.4% higher at ₹3,198.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Rakesh, Shobha Gangwal may sell stake worth $450 million in IndiGo via block deal on Wednesday

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Rakesh Gangwal family may sell shares up to $450 million (Rs 3,735 crore) in Interglobe Aviation, the parent company of IndiGo airlines, via a block deal on Wednesday (August 16), sources privy to the developments told CNBC-TV18.

The offer floor price for the sale by Rakesh and Shobha Gangwal was set at Rs 2,400 per share, nearly 6 percent discount from the current market price (CMP).

As of June 30, 2023, the Gangwal family holds a 29.72 percent stake in InterGlobe Aviation Ltd. Post the block deal, the Gangwal family’s stake will fall to 25.72 percent.

Morgan Stanley, JPMorgan, and Goldman Sachs are the investment banks advising the Gangwal family on the block deal. There is a lockup period of 150 days post-block deal.

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

Also Read: IndiGo back in black, posts Rs 919 crore Q4 profit on higher revenue

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.

InterGlobe Aviation is engaged in the business of providing domestic and international air transport services under the name ‘Indigo’. Rakesh Gangwal along with Rahul Bhatia co-founded low-cost carrier IndiGo airline.

Gangwal had resigned from the board of directors of the company in February 2022, stating that he will gradually reduce his equity stake over the next five years.

Also Read: IndiGo is not eyeing a stake in GoFirst, says CEO Pieter Elbers

For the first quarter, IndiGo reported the highest ever-quarterly net profit of Rs 3,090.7 crore. The airline recorded the highest ever-quarterly revenue of Rs 16,683 crore during the period under review, up 29.8 percent against Rs 12,855.2 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA stood at Rs 5,210.9 crore, over Rs 716.9 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 31.2 percent in the reporting quarter as compared to 5.6 percent in the corresponding period in the previous fiscal.

Shares of Indigo on Monday (August 14) ended at Rs 2,547.50, up by Rs 32.65, or 1.30 percent on the BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo shares dip as Gangwal family sells 2.74% stake via block deal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Interglobe Avi” isinid=”INE646L01027″ bseid=”539448″ nseid=”INDIGO” sector=”Transport & Logistics” exchange=”bse”]

Shares of IndiGo’s parent company Intergloble Aviation traded red after co-promoter Rakesh Gangwal and his wife on Thursday divested a 2.74 per cent stake in the parent company InterGlobe Aviation for Rs 2,005 crore through open market transactions.

The shares of the largest Indian airline have been losing weight in anticipation of this deal for a few days. At 10:20 am, shares of Interglobe Aviation were trading at Rs 1,933, a marginal decline from the previous close on the BSE.

In February 2022, Gangwal announced his resignation from the low-cost airline’s board of directors, gradually diminishing his equity stake over the next five years.

Gangwal and his wife, Shobha, have sold a total of 1.05 crore shares, amounting to a 2.74 per cent stake in the company, as per data from NSE.

The shares were sold in the range of Rs 1,886.47 to Rs 1,901.34 apiece, valuing the transaction at Rs 2,004.77 crore.

According to shareholding pattern information available on the stock exchanges, as of the April-June quarter, Gangwal and his family held a 36.61 percent stake in IndiGo Airlines.

He and his wife both held 14.6 percent and 8.39 percent of the company respectively while Chinkerpoo Family Trust has the remaining portion.

According to Mark D Martin of Martin Consulting Rakesh Gangwal is testing the waters with the small stake sale and doesn’t feel the need to read too much between the lines.

Also read: IndiGo shares dip over 4% as Gangwal family looks to sell stake via block deal

He believes that InterGlobe needs to expand globally as they are already saturated in the domestic market. IndiGo is already quite significantly exposed to the domestic market, he told CNBC-TV18.

Meanwhile, Pieter Elbers started as IndiGo Chief Executive Officer on Tuesday, replacing Ronojoy Dutta, who decided to retire on September 30.

(With inputs from PTI)

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo block deal: Morgan Stanley to sell 2.8% stake held by Gangwal family

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global financial services major Morgan Stanley is likely to sell a 2.8 percent stake held by the Rakesh Gangwal family in the country’s largest carrier IndiGo via a block deal tomorrow (September 8), sources privy to the developments told CNBC-TV18.

Gangwal and his family own 36.61 percent stake in InterGlobe Aviation, the parent company of Indigo. Co-Founder and Managing Director Rahul Bhatia and his family own about 37.8 percent.

The floor price has been fixed at Rs 1,850 per share, at a 6.5 percent discount from the current market price (CMP), according to multiple people familiar with the development.

Also Read: Pieter Elbers takes charge as IndiGo CEO — more about the Dutchman here

Back in February, IndiGo Co-Founder Gangwal resigned from the board, planning to cut his stake in the airline over the next five years.

He and Bhatia had engaged in a spat in early 2020 when Gangwal sought to modify certain rules in the company’s articles of association.

A non-executive director, Gangwal had alleged violations in corporate governance rules at the parent group and wanted to remove an article that prevented co-founders from buying publicly-listed shares in InterGlobe and potentially triggering an open offer for the rest of the company.

Also Read: Aviation Ministry seeks to double the loan outstanding limit under ECLGS

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

News wrap Feb 18: IndiGo co-founder Rakesh Gangwal resigns from board; Air India mulls action against Builder.ai; Sensex, Nifty end in red and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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IndiGo promoter Rakesh Gangwal resigned from the Board of Directors of InterGlobe Aviation as a non-executive, non-independent director on Friday. Coming to Mumbai, union railway minister Ashwini Vaishnaw travelled by a local train between Thane and Diva stations on the Mumbai suburban rail network and ate ‘vada pav’, a popular snack, at a roadside eatery during his visit. In the markets, equity indices surrendered mid-session gains to close lower for the third day in a row on Friday as participants remained cautious amid geopolitical uncertainties in eastern Europe. Here are some more top news of the day.

BUSINESS/ECONOMY

InterGlobe’s Rakesh Gangwal resigns from board, keeps option of returning open

IndiGo’s co-promoter Rakesh Gangwal on Friday resigned from the board of directors of parent company InterGlobe Aviation, stating that he will gradually reduce the equity stake in the airline over the next five years. Gangwal and his related entities own around 37 percent stake in this company. Read more

Vedanta to invest up to $20 bn in semiconductor biz in India, roll out by 2025

Indian conglomerate Vedanta has earmarked $15 billion for a foray into the electronic chip and display manufacturing space, and plans to scale up the investment to as much as $20 billion, a senior company official said. Read more

Air India warns flyers against ‘free tickets’ newspaper ad

Air India has issued an official statement warning people about a print advertisement put out by Builder.ai in leading newspapers. The ad has a QR code and links to an app that claims to offer free Air India flight tickets. Read more

MARKETS

Sensex, Nifty50 fall for 2nd week dragged by financial, metal stocks; Nifty Bank’s worst week in 2 months

Indian equity benchmarks finished a volatile week with cuts of around half a percent, dragged by financial and metal stocks, amid geopolitical tensions, sustained FII outflows and concerns about faster rate hikes. News flow on the Ukraine-Russia conflict kept investors on edge globally. Read more

Paytm, Fino Payments, CarTrade hit fresh lows, Zomato slips 3%; why new-age stocks are down

Shares of new-age companies traded lower on Friday with Paytm, Fino Payments, and CarTrade hitting fresh lows amid an overall negative trend in the market. Other 2021 debutants including, Zomato, PB Fintech and Nykaa were also in the red. Read more

A look at D-Street’s biggest wealth destroyers of 2022 so far

Indian equity benchmarks gave up their entire year-to-date gains within the first 45 days of 2022. Concerns about rising interest rates amid worsening consumer inflation, wild swings in oil prices, FII outflows and geopolitical tensions have kept investors on edge. However, an infrastructure focus in the Union Budget and a dovish RBI have aided investor sentiment. Read more

INDIA

India’s air passenger traffic down 43% MoM in January: DGCA

Air passenger traffic in the country stood at 64.08 lakh in January, down 17 percent on a year-on-year basis, data from aviation regulator Directorate General of Civil Aviation (DGCA) showed. The air passenger traffic was down 43 percent compared with December 2021. Read more

Railway minister travels in Mumbai local train, tastes ‘vada pav’ outside station

Railway Minister Ashwini Vaishnaw on Friday travelled by a local train between Thane and Diva stations on the Mumbai suburban rail network for inspection of two additional railway lines, and ate ‘vada pav’, a popular snack, at a roadside eatery during his visit, officials said. Read more

India’s GDP likely to grow at 5.8% in Oct-Dec: SBI report

The country’s gross domestic product (GDP) is likely to grow at 5.8 percent in the third quarter of fiscal 2022, according to an SBI’s research report- Ecowrap, released on Friday. The country’s economy expanded by 8.4 percent in the second quarter of 2021-22, to cross pre-pandemic levels. Read more

WORLD

Belgium latest to opt for 4-day workweek; here are other countries trying it out

Belgium has joined a host of other countries that are offering employees a four-day workweek as part of its changes in labour laws in a post-COVID era. Read more

This UK-based YouTuber claims he was the world’s richest, but only for 7 minutes

UK-based YouTuber Max Fosh claimed he had become the world’s richest person, dethroning tech billionaire Elon Musk, albeit for a period of seven minutes. Fosh’s net worth became nearly twice as much as that of the Tesla founder during that period, he said. Read more

Ship carrying hundreds of Porsches and Bentleys catches fire near Azores, off Portugal coast

A ship carrying Porsches, Audis and Bentleys from Germany to the United States has caught fire near the coast of Portugal’s Azores islands in the Atlantic ocean, a spokesperson for carmaker Volkswagen said on Friday. The Panama-flagged ship was travelling from Emden, Germany — where Volkswagen has a factory — to Davisville in the United States, based on the Maritime Traffic website. Read more

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo EGM concludes, result in 2 days; CEO Rono Dutta assures stronger recovery

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The extraordinary general meeting (EGM) of InterGlobe Aviation (the parent of IndiGo), the country’s largest low-cost airline, concluded Thursday. The promoters of IndiGo Rakesh Gangwal and Rahul Bhatia had called the EGM to propose amendments to the carrier’s Articles of Association (AoA) that would resolve the issues between the two. The shareholders in the EGM were required to vote on it. The result of the EGM voting that took place via video conferencing would be uploaded within two working days.

Meanwhile, IndiGo CEO Rono Dutta has said while the Omicron variant has softened future bookings, the company is on its way to recovery. He added the company will emerge stronger after the two turbulent years due to the coronavirus pandemic.

The EGM had proposed to remove some clauses like the right of first refusal and tag-along from the AoA. These clauses are a key point of friction between the company’s founders Rakesh Gangwal and Rahul Bhatia. The removal of the right of refusal will allow either promoter to sell or transfer their shares to a third entity without giving notice to each other. Some experts consider this EGM may signal a truce between Bhatia and Gangwal. Both the promoters collectively own 74.44 percent of the paid-up equity share capital in the company. Earlier in 2019, Gangwal alone had called an EGM to amend the AoA.

The conflict

Bhatia and Gangwal had founded IndiGo in 2006 and held nearly 99 percent of the stake before its listing in 2013. As of March 31, 2021, Gangwal owned a 37 percent stake in the company, while Bhatia owned about 38 percent.

The dispute began in May 2019 when Gangwal accused Bhatia of making unfair deals between InterGlobe Aviation and Bhatia Group entities. He flagged unusual rights that gave Bhatia more control over the board and allegedly led to governance failures. He also flagged instances of lack of approval of audit committee in some cases, lack of competitive bidding, and backdating contracts. When board Chairman M Damodaran reviewed the InterGlobe’s related party transactions, he found some were not approved by an audit committee.  These related party transactions had increased to Rs 315 crore in FY18 from Rs 30 crore between 2010-11 and 2017-18.

Further, the two founders also diverge on IndiGo’s strategy for growth. While Gangwal is said to favour an aggressive growth route, Bhatia favours a slow approach.

The feud between the co-founders had turned legal and reached the Delhi High Court in October. Before that, both of them had battled against each others’ claims at the London Court of International Arbitration (LCIA).

IndiGo shares that were earlier down over 1 percent at Rs 1,984, recovered a bit. At the last count, shares were up to Rs 1,991. Meanwhile, Sensex was up over 0.3 percent to 57,994.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Crucial IndiGo EGM today; here’s what is on agenda

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s top aviation company IndiGo will hold a crucial extraordinary meeting today. Shareholders are likely to take a decision on amending the company’s Articles of Association which has been a key point of friction between the company’s Founders Rahul Bhatia and Rakesh Gangwal.

The EGM has been called to make several changes to the AOA, which also include the removal of a clause which gives the promoters, Bhatia and Gangwal, the right of first refusal over the acquisition of each other’s shares. A removal of this clause will allow either side to sell or transfer shares to a third entity without giving notice to each other.

Some officials say that this EGM may signal a truce because this has been called after joint requisition by both promoters and that there will be more clarity after the EGM. The legal tussle between the two promoters who own around 75 percent of the largest Indian airline became public in July 2019; the corporate battle even reached the London Court of Arbitration and recently in October, Gangwal had approached the Delhi High Court for enforcement of the London award.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow