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Nearly two decades ago, Rakesh Gangwal and Rahul Bhatia co-founded IndiGo, blending complementary strengths to create India’s largest airline. Gangwal brought aviation expertise honed at US Airways and Worldspan Technologies, while Bhatia contributed capital, networks and political access.

Together, they transformed a nascent airline into a market leader, famed for operational efficiency, cost discipline and consistent profitability — even in a notoriously volatile industry.

However, what started as a synergistic partnership gradually gave way to tension. By 2019, differences over governance, ownership control and strategic direction became public.

While Bhatia focused on aggressive expansion and strategic alliances, Gangwal grew increasingly concerned about oversight and corporate governance. The rift became insurmountable in December 2021, seemingly, when shareholders approved the removal of a key clause — the right of first refusal between founders — paving the way for Gangwal to sell his shares to third parties.

In February 2022, Gangwal resigned from IndiGo’s board, announcing a phased five-year plan to gradually reduce his stake. This plan has been executed meticulously over successive transactions.

In September 2022, the Gangwal family sold a 2.74 per cent stake for Rs 2,005 crore, followed by Shobha Gangwal (Rakesh’s wife and also a co-founder) divesting another 4 per cent for Rs 2,944 crore in February 2023 and then a further 2.9 per cent in August 2023 for over Rs 2,800 crore.

August 2024 saw the sale of a 5.24 per cent stake worth Rs 9,549 crore, while May 2025 included a 5.72 per cent divestment for Rs 11,564 crore. Cumulatively, the family has raised more than Rs 45,000 crore through systematic stake sales.

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Today, 28 August, Thursday, the Gangwal family’s sale of up to 3.1 per cent of their stake should amount to 1.21 crore shares, in a block deal valued at Rs 7,084.6 crore at Rs 5,830 per share, according to a CNBC-TV18 article. Post this sale, their holdings will fall from 7.81 per cent to 4.71 per cent.

The transaction is entirely secondary, with no new shares issued, being executed through block deals on the NSE and BSE, with Goldman Sachs (India) Securities, Morgan Stanley India Company and JP Morgan India as brokers.

The deal includes a 150-day lock-up period for the vendors and their immediate relatives, with provision for a single negotiated transfer worth at least USD 300 million, provided the buyer adheres to the lock-up conditions.

Shares of InterGlobe Aviation dipped after the announcement, reflecting market reactions to the continued exit of a founding promoter. Despite a recent dip in profitability, IndiGo continues to post strong operational performance and is banking on international expansion to sustain its growth.

The phased exit reflects not just a business decision but the closing of a defining chapter in Indian aviation.

From the pre-Covid years of rapid growth and market dominance to the post-pandemic landscape marked by operational pressures, IndiGo has shifted from founder-led control to institutional governance, with investors now holding over 45 per cent of the equity.

Gangwal’s gradual withdrawal marks the end of an era, leaving behind a legacy that reshaped India’s skies.

For Bhatia, who remains, and the airline they created, Gangwal’s exit signals the evolution of IndiGo into a professionally managed, institutionally backed entity — and marks the start of a new phase for a carrier that once epitomised the ambitions of its two visionary founders.

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