The ongoing saga of the Gangwal family's exit from InterGlobe Aviation, the parent company of IndiGo Airlines, has been unfolding since 2022. Once a core promoter group in the company, the Gangwal family has been steadily reducing their stake over the past three years. As of the latest block deal, their shareholding has dropped significantly, signaling a near-complete exit in the near future.

As of today, the Gangwal family has brought down their stake from 36.6% to 13.5%, following a block deal in which they sold 5.8% of their holdings. This deal is just the latest step in their systematic withdrawal from the airline. Presently, only about 7.5% of their stake remains in the company. Since June 2022, they have offloaded nearly 23% of their total holdings in the airline.

But the key question is — why are the Gangwals selling their stake in IndiGo?

The roots of this decision trace back to July 2019, when a serious dispute emerged between the two co-founders of IndiGo — Rakesh Gangwal and Rahul Bhatia. The conflict was centered around issues of corporate governance, related-party transactions, and differences in strategic direction for the airline. Rakesh Gangwal was vocal about his concerns regarding governance practices, while also pushing for a more aggressive growth strategy. In contrast, Rahul Bhatia favored a more cautious and stable expansion plan.

These disagreements created a rift between the two founding partners and eventually escalated to a point where changes were inevitable. In December 2021, both sides called for an Annual General Meeting (AGM) to reach a resolution. The outcome was a settlement between the two, which also involved amending the Articles of Association of the company to remove certain restrictions.

Following this development, on February 18, 2022, Rakesh Gangwal announced his resignation from the IndiGo board. Since then, the Gangwal family has been gradually reducing its stake in the company, signaling a long-term plan to completely exit their investment in IndiGo.

Today’s block deal is just another chapter in this unfolding story — a step closer to the Gangwal family's full exit from India's largest airline by market share. While the reasons for the stake sale are rooted in past disagreements and strategic differences, the move also opens up the possibility for a new phase in IndiGo's promoter structure and perhaps its future direction.

As the airline industry continues to evolve post-pandemic, the exit of a key promoter may also mark the beginning of a new era for IndiGo — one shaped by fresh partnerships, governance models, and growth strategies.

Description:

The Gangwal family's exit from IndiGo: Why they’re selling their stake, the timeline of events since 2019, and how internal disputes led to a major change in India’s leading airline.