InterGlobe Aviation trades flat after promoter stake sale

The shares of InterGlobe Aviation, which operates low-cost carrier IndiGo, were trading flat on August 17 morning, a day after promoter Shobha Gangwal offloaded her entire shareholding in the country’s biggest airline.

Shobha Gangwal sold 38.41 lakh shares through open market at an average price of Rs 2,426.21 a share and another 38.41 lakh at an average price of Rs 2,440.92. She sold a third tranche of 38.41 lakh at average Rs 2,427.09 apiece. In total, Gangwal sold 1.15 crore shares, amounting to 2.99 percent stake, for Rs 2,802 crore.

Morgan Stanley in an earlier report had an “overweight” call on InterGlobe Aviation, citing dominant market share, strong operational performance, and capacity additions.

The brokerage also raised the target price from Rs 3,126 to Rs 3,321, implying an upside of about 27 percent from the current market price.

Follow our live blog for all the market action

Motilal Oswal has a “neutral” call with a target price of Rs 2,630. The brokerage firm in its August 3 report said “capacity growth guidance remains intact after a record quarter”.

In an August 3 report, Emkay Global had a “buy’ rating with a 12-month target price of Rs 3,000 . “We value Indigo using the discounted cash flow (DCF) method, with a target price of Rs3,000/sh (14.8x Mar-25E target P/E). Key risks for the airline are adverse currency/fuel prices, recession, stake sale and operational issues,” it said.

HSBC has a “buy” call with a target price of Rs 3,230 per share.

The stock has given a return of 30.59 percent over the last six months, outperforming the Nifty50, which has gained 8.48 percent.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.