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Wednesday , 17 July 2019
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Rs.120 crore Indigo shares sold

IndiGo Airlines which has recorded the fastest growth in the domestic passenger segment at the rate of 26 percent has sold its shares worth Rs.120 crores.

HDFC Mutual Fund, UTI MF and DSP BlackRock MF completely liquidated their holdings in IndiGo in June, amid its shares trading near record levels sending information about speculations that the airline may witness a downfall sooner or later. The invetors who ar still with the airlines includes ICICI Prudential MF, Motilal Oswal MF, SBI MF, Birla Sun Life MF, BNP Paribas MF and Tata MF.

“We have been investors in the company since its listing. Most of our schemes have benefited from a good rally in the counter. So, it was a profit-booking exercise, on the back of a not-favourable outlook for the aviation sector this year. However, what triggered selling was a sudden interest shown by the company in Air India. IndiGo continues to be the best bet for investment in the aviation space. Going forward, if an opportunity comes in, we might re-think to buy.” said a fund manager.

The promoters of the airlines have diluted their stake to comply with the regulatory requirements. The meeting which will be held on July 31st will discuss about foregoing 10% stake thereby reducing the total stake from 85% to 75%

With the domestic passenger segment growing in double digits for the past 3 years is set to reach the saturation point soon.

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