IndiGo share price falls over 4% after Rs 13,800 crore block deal; Gangwal family trims stake; brokerage remains divided

Shares of InterGlobe Aviation Ltd, the parent of IndiGo, were heavily sold off in early trade on Tuesday, down as much as 4.49 per cent, to a price of Rs 5,230.50 on the NSE. This decline followed a massive block deal worth Rs 13,789 crore – one of the largest we have seen. According to reports, the Gangwal family, the longtime promoters of India’s largest airline, sold a portion of their holding as part of this transaction.

Gangwal family pares 5.7% stake in IndiGo via block deal

There was speculation that the block was executed at a floor price of Rs 5,175 a share, a 4.5 per cent discount to Monday’s closing price. According to a reports, Rakesh Gangwal and The Chinkerpoo Family Trust sold a 5.7 per cent stake in the airline, valued at approximately $1.36 billion. The Gangwal family’s holdings represented 13.53 per cent at the end of the March quarter.

Heavy selling triggers stock slide despite strong YTD performance

Despite the sell-off on Tuesday, IndiGo shares are up 18 per cent so far in 2025 and nearly 28 per cent over the past six months. The recent upward momentum in the stock has been driven by very strong Q4FY25 earnings, strong passenger growth, and declining crude prices, as well as seasonal traffic during Maha Kumbh and a strengthening rupee.

IndiGo’s international push and leadership strategy in focus

Brokerages are still conflicted about the future of IndiGo. Motilal Oswal Financial Services (MOFSL) reiterated a ‘Buy’ recommendation with a target price of Rs 6375, citing the airline’s international expansion, fleet strategy, and the new leadership of Pieter Elbers. Under Elbers, IndiGo has improved its global partnerships, demonstrating its commitment to global network growth. The airline also stated that 30 per cent of its ASK is currently on international routes.

Valuation concerns emerge as capacity growth outpaces demand

Nuvama Institutional Equities raised a potential imbalance simultaneously between the supply (IndiGo’s aggressive capacity addition) and demand, concluding that these capacity additions combined with geopolitical uncertainty could certainly weigh on their yields. Consequently, Nuvama maintained ‘Hold’ recommendations, but reduced its FY26 EBITDAR expectations, and set a revalued target price of Rs 5199.

What’s next for IndiGo stock?

The dip in the stock after the block deal certainly presented as a short-term overhang, but analysts have noted that in the long-term fundamentals remain intact The key level of support will be of interest, particularly as further promoter dilution should continue. Support levels are always important to watch and given the ratio of promoters to minority investors, the volume through the stock to a degree is partially based upon confidence in management and guidance. We would suggest any investors in the stock track volumes closely and updates from management in the next few days.