IndiGo EGM Ends, CEO Ronojoy Dutta Assures Shareholders Of Stronger Recovery

The promoters of IndiGo — Rakesh Gangwal and Rahul Bhatia — had called the EGM to propose amendments to the company’s Articles of Association that would resolve the conflict between the two

The result of the EGM voting that took place through videoconferencing would be uploaded within two working days, the company said. Image: Getty

New Delhi: The extraordinary general meeting (EGM) of InterGlobe Aviation, the parent firm of low-cost airline IndiGo, was held on Thursday.

According to news report, the airline’s Chief Executive Officer Ronojoy Dutta assured the shareholders that the company will emerge stronger after facing two turbulent years of uncertainty due to the Covid-19 pandemic.

Dutta, who was speaking at the EGM of InterGlobe Aviation, said that while at the moment, flight bookings have taken a hit because of the outbreak of the Omicron variant of Covid-19, the Indian aviation industry is still showing strong signs of recovery and any fall in bookings is likely to be temporary.

The promoters of IndiGo — Rakesh Gangwal and Rahul Bhatia — had called the EGM to propose amendments to the company’s Articles of Association (AoA) that would resolve the conflict between the two. 

The shareholders in the EGM were required to vote on it. The result of the EGM voting that took place through videoconferencing on Thursday would be uploaded within two working days. The EGM had proposed to remove some clauses like the right of first refusal and tag-along from the AoA. These clauses are a key point of friction between Gangwal and Bhatia.

If the resolution is accepted, it would end the dispute between Bhatia and Gangwal, who collectively hold 74.44 per cent of the paid-up equity share capital and have been at loggerheads for more than two years now.

IndiGo was founded in 2006 by Bhatia and Gangwal and they held around 99 per cent stake before its listing in 2013. As of March 31, 2021, Gangwal owned a 37 per cent stake in the company, while Bhatia owned about 38 per cent.

Shares of InterGlobe Aviation, closed 1.40 percent down (28.10 points) lower at Rs 1,980.05 on the BSE on Thursday.