New Delhi: IndiGo co-founder and InterGlobe Aviation’s non-executive, non-independent director Rakesh Gangwal on Friday resigned from the board with immediate effect.
He is planning to reduce his stake in the airline over the next five years, IndiGo’s parent company InterGlobe Aviation said in an exchange filing on Friday.
Gangwal and his family owns 36.61 per cent stake in the parent firm, while another co-founder and Managing Director (MD) Rahul Bhatia and his family owns about 37.8 per cent, giving them both a major say in the carrier’s strategy.
On February 4, InterGlobe Aviation announced the appointment of co-founder Rahul Bhatia as the MD with immediate effect.
The two had engaged in a spat in early 2020 when Gangwal sought to modify certain rules in the company’s articles of association. He had alleged violations in corporate governance rules at the parent group and wanted to remove an article that prevented co-founders from buying publicly-listed shares in InterGlobe and potentially trigger an open offer for the rest of the company.
Gangwal in a letter to the board of InterGlobe Aviation said, “I have been a long-term shareholder in the company for more than 15 years and it’s only natural to someday think about diversifying one’s holdings.”
In December last year, the shareholders of the parent company approved changes to articles of association, including scrapping rules that restricted sale or transfer of shares to a third party.
Gangwal said he was stepping down immediately as he did not want to hold access to unpublished price sensitive information, while he began trimming his stake in the company.
An American and aviation industry veteran, Gangwal has spent several years in senior roles at United Airlines and US Airways, while Bhatia runs things on the ground in India.