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Bloomberg
InterGlobe Aviation Ltd., operator of India’s largest airline, has picked banks including Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley to work on an institutional share sale, according to people with knowledge of the matter.
InterGlobe, which operates the IndiGo carrier, is planning the sale to help cut its owners’ stake to achieve the minimum public shareholding of 25%, the people said, asking not to be identified because the information is private. To meet requirements, the company or its controlling shareholders must sell a 10.85% stake, worth about Rs4900 crore ($761 million) based on the current share price, according to data complied by Bloomberg.
The founders of InterGlobe held 85.85% in the company at end of June, while public shareholding was at 14.15%, according to BSE data. The firm said on Wednesday its board will meet on July 31 to consider ways of achieving a
minimum public float.
Representatives for InterGlobe, Citigroup, Morgan Stanley and JPMorgan declined to comment.
IndiGo, majority owned by billionaire founders Rahul Bhatia and Rakesh Gangwal, has expressed interest in buying a stake in loss-making Air India Ltd. IndiGo’s founders said they are interested in taking over the state-run carrier’s overseas operations or the entire
business.