Another block deal in IndiGo, 5 lakh shares change hands; stock flat

Earlier on Tuesday, promoter group entity had sold a 2% stake or around 77 lakh shares in the airline after which their ownership had dropped to 35.75%. That was the first instance the Bhatia Family sold their stake in InterGlobe Aviation after the IPO.

The promoter group is said to be planning to invest money in the hospitality business, primarily to increase their presence in Europe, according to an earlier report by ET.

In December last year, InterGlobe Enterprises announced the introduction of a new lifestyle hotel brand, Miiro, to launch a collection of individually designed hotels in European cities. The chain will debut this summer in Paris and Barcelona, with more European markets in plan.

Following the large deal, shares of the airline company fell up to 4.4% at Rs 4,361 on BSE and were trading around 3% lower at 9:25 am.

Trendlyne data shows that out of 20 analysts with coverage on the stock, 16 have buy ratings and the remaining four recommend a hold.

Domestic brokerage Kotak Institutional Equities had last week raised target price from Rs 5,100 to Rs 5,700 by factoring in the likelihood of Indigo moving toward its historical peak of spreads over FY2026-27.

"Recent sound bites from Industry experts suggest most challengers to Indigo will see another year of stiff losses in FY2025 and won’t see a meaningful boost to aggregate supply over this period. A key challenger has suggested current pricing levels not taking into account cost inflation. We build in 2% higher yields over the next three years despite a 6% decline in crude prices versus FY2024 base; aligned to current ATF prices in Delhi," Kotak said.