Indigo Shares Fall As Promoters Plan Selling 5.8% Stake

Shares of IndiGo operator, InterGlobe Aviation Ltd., fell as the company's promoters Rakesh Gangwal and Chinkerpoo Family Trust plan to sell up to 2.25 crore shares in the company in an upsized block trade, Bloomberg reported citing terms of the deal.

The shares mentioned in the terms account for a 5.82% stake in the company. As of June, Gangwal held 5.89% stake in the company and The Chinkerpoo Family Trust held 13.49%, according to BSE.

An earlier report on Wednesday had said that the company was planning to sell up to 1.47 crore shares of the company via block deals to raise up to Rs 6,750 crore.

Shares will be sold at a floor price of Rs 4,593 each, a 5.5% discount to Wednesday's close, it said.

On BSE, 2.25 crore shares changed hands at Rs 4,714.9 per share in a large trade, according to Cogencis. Buyers and sellers of the trade were not known immediately.

Shares of InterGlobe Aviation Ltd. fell as much as 2.8%, before paring loss to trade 0.44% lower at Rs 4,836 apiece, as of 9:30 a.m., compared to a flat NSE Nifty 50.

The stock has risen 63.52% year-to-date and 99% in the last 12 months. Total traded volume so far in the day stood at 3.17 times its 30-day average. The relative strength index was at 75, indicating that it may be overbought.

Out of 22 analysts tracking the company, 17 maintain a 'buy' rating, three recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 1%.