Law firms JSA, IndusLaw, and A&O Shearman have been engaged to handle the $401 million divestiture of IndiGo.
In a significant move for the Indian aviation sector, Citigroup has purchased 7,719,573 equity shares in IndiGo, the low-cost Indian airline, for 13.6 billion rupees ($401 million) via the open market.
The sale took place on the Bombay Stock Exchange (BSE) and was made in InterGlobe Aviation, the operator of IndiGo. Prior to the sale, InterGlobe Enterprises, the parent company of IndiGo, held a 37.75 percent share in InterGlobe Aviation. After the sale, their shareholding reduced to 35.76 percent.
The IndiGo share purchase was advised by IndusLaw and A&O Shearman. IndusLaw's team included partners Vishal Yaduvanshi and Priyadarshini Rao, with associate Abishek Sankar. On the other hand, J. Sagar Associates advised Interglobe Enterprises on a 2 percent divestiture in IndiGo. The JSA team involved partners Madhurima Mukherjee Saha, Shivali Singh, and associate Rishika Kharbanda.
This transaction highlights the growing interest of international investors in the Indian aviation sector. It's worth noting that other key firms advising on major Indian aviation transactions include Watson Farley & Williams, AZB & Partners, Kochhar & Co., Covington, Pillsbury Winthrop, and Bird & Bird. These firms are recognized for their expertise in cross-border transactions, corporate and aviation sector advice, and significant aviation sector transactions and mergers in India.
This deal marks a significant step for IndiGo and the Indian aviation sector, signalling a positive trend for foreign investment and growth in the industry. As the sector continues to evolve, we can expect to see more such transactions in the future.
The transaction involving the purchase of IndiGo shares by Citigroup was advised by law firms IndusLaw and A&O Shearman, indicating the intersection of law and finance. The sale also implies the impact of finance, as it had a significant effect on the shareholding of IndiGo's parent company, Interglobe Enterprises.
