IndiGo co-founder Rakesh Gangwal has asked Citigroup, Goldman Sachs, Morgan Stanley and JP Morgan to handle the planned sale of his shares in the airline, banking sources have told ET.

He could sell at least 5-7% of his family’s stake in India’s biggest airline this year, they added.

Gangwal, his wife Shobha and their family trust together own a 36.6% stake in InterGlobe Aviation, the parent entity of IndiGo, whose market capitalization hit ₹76,767 crore as of Tuesday’s market close. Their combined stake could be worth up to ₹28,097 crore.

Management churning since February

Meanwhile, longtime contender Qatar Airways has also reportedly courted Gangwal for a substantial stake, according to market participants.

Gangwal resigned from InterGlobe Aviation’s board of directors in mid-February and said he would sell his stake over five years.

The sale, sources say, is aimed at taking advantage of a recovery in the aviation sector from the lows of the Covid-19 pandemic.

Late last year, IndiGo shareholders approved an amendment to the company’s articles of association, allowing Gangwal to sell its stake without the approval of co-founder Rahul Bhatia.

Gangwal and Bhatia had been locked in a bitter legal row for several years over allegations of abuse of power and related party transactions. Gangwal, once an active promoter, declined to participate in key buying decisions in 2018 and then stepped back on all operational aspects, until his resignation in February. Bhatia took over as chief executive the same month.

Since then, there has been a change in management within the airline.

On Monday, IndiGo announced the appointment of former bureaucrat RK Singh as senior adviser to the chief executive. Singh was Joint Secretary in the Ministry of Civil Aviation and served on the boards of Air India, Indian Airlines, Alliance Air and Air India Charters Ltd (Air India Express).

Another leader will soon leave

IndiGo chief commercial officer Willy Boulter will also leave in July, marking the second high-profile exit this year after chief financial officer Jiten Chopra was replaced by senior vice president Gaurav Negi last Wednesday. IndiGo shares ended down around 1% at ₹1,992.65 each on BSE Tuesday.