IndiGo Co-founder Sells $835M Stake as US Tariffs Hit Markets

Rakesh Gangwal, who is also a co-founder of IndiGo, is offloading more of his stake in the airline company. The transaction is reported to be approximately ₹7,027 crore or $835 million. Up to 3.1% of his family’s holdings in InterGlobe Aviation, which operates IndiGo, will be sold.

The shares are being offered at ₹5,808 a piece. That is slightly lower than the previous closing price of ₹6,050. Large banks such as Goldman Sachs, Morgan Stanley, and JPMorgan are assisting with the sale.

US Tariffs Making Things Hard

The sale timing occurs when the Indian stock market is under strain. US President Donald Trump has also increased US tariffs on Indian goods to 50%. This makes it more difficult for Indian exporters to export to the US.

Textiles, jewelry, auto components, carpets and engineering products are the most impacted industries. America purchased $81 billion worth of Indian goods last year. The hasty hike in tariffs is giving investors a jolt and the market a bit unstable.

Gangwal Gradually Stepping Away from IndiGo

Gangwal has been selling his stakes in IndiGo for quite some time. He quit the board in February 2022 after some conflict with the other directors. Ever since then, he has been disposing of his stakes in instalments.

In May this year, his family has sold shares worth approximately ₹11,900 crore. After this recent sale, their overall holding will reduce to about 4.71% from 7.81%. They have also covenanted not selling additional shares for 150 days, but a single private transaction might still occur.