IndiGo, IRB Infra, Honasa Witness Block Deals Totaling ₹5,500 Crore

Over ₹5,500 crore worth of block deals were executed on the exchanges today, involving significant stake sales in InterGlobe Aviation (IndiGo), Honasa Consumer, and IRB Infrastructure Developers.

In InterGlobe Aviation, which operates IndiGo airline, promoter Rahul Bhatia's holding firm, InterGlobe Enterprises, sold 77.2 lakh shares, or nearly 2% of the equity, for ₹3,367.3 crore. At the end of March, InterGlobe Enterprises held a 37.75% stake in the airline company.

InterGlobe Enterprises stated that the sale proceeds would be used to scale up its hospitality and other incubating businesses, as well as for general corporate purposes. Post-sale, Bhatia’s promoter group remains IndiGo’s largest shareholder. Rahul Bhatia will continue as a promoter and Managing Director, maintaining his role in driving IndiGo's strategic direction alongside CEO Pieter Elbers.

This is the second time Bhatia has sold a stake in the company he co-founded with Rakesh Gangwal, who still holds over 5% of the equity after progressively reducing his stake as per a three-year-old agreement.

"The strong response from investors highlights IndiGo’s competitive strength and long-term prospects. IndiGo is a standout success, and I am immensely proud of our company’s journey so far and remain very excited to continue overseeing IndiGo’s next phase of growth," said Bhatia.

Despite recent engine troubles, IndiGo’s shares have nearly doubled from their lows in June last year. The airline posted a strong performance in FY24 and plans to introduce business class services. Its shares ended 4.26% down at ₹4,368.20 on the BSE today.

Dutch infrastructure major Ferrovial’s subsidiary Cintra sold a 5% stake in IRB Infrastructure for ₹1,921 crore as part of its divestment plan. Cintra held a 24.86% stake in the road development company at the end of March. The shares were sold in two chunks at ₹63.43 and ₹64.02 per share.

IRB Infrastructure’s shares have tripled since August last year, reaching a 52-week high last week. The stock closed 5.3% lower at ₹66.44 on the NSE.

Personal care products company Mamaearth’s parent, Honasa Consumer, saw 2% equity worth ₹282 crore change hands as investors Fireside Ventures and Sofina Ventures sold identical stakes. Fireside Ventures held a 5.28% stake, while Sofina Ventures held a 6.16% stake at the end of March.

Honasa listed in November last year at par and climbed to a 52-week high in January. On Tuesday, it fell nearly 5% to close at ₹435.20 on the BSE. The company reported a robust performance in the March quarter with 23% like-for-like sales growth and good market share gains.

HBL