shares of IndigoParent InterGlobe Aviation fell 4% in Monday’s deals after its co-founder Rakesh Gangwal resigned from the company’s board on Friday as part of plans to gradually reduce its stake in India’s biggest airline .
In a letter to InterGlobe’s board on Friday, Rakesh Gangwal said he was stepping down immediately because he did not want access to unpublished price sensitive information when he started reducing his stake in the company. He also expressed his desire to reduce his approximately 37% stake in the airline over the next five years.
“I have been a long-term shareholder in the company for over 15 years and it is only natural to think of diversifying my stake someday,” Gangwal said in the letter.
Gangwal and his family hold 36.61 per cent stake in InterGlobe, while another co-founder and managing director Rahul Bhatia and his family hold around 37.8%.
Earlier this month, InterGlobe reported its first quarterly profit in two years and named Bhatia as managing director. IndiGo’s revenue from operations jumped, reflecting signs of slow recovery in the pandemic-hit airline industry 9,294.8 crore in the latest December quarter as compared to 4,910 crore in the same period a year ago.
The airline also said that it expects revenue to improve from April this year as demand for travel rebounds from the disruption caused by the COVID-19 pandemic. It has also appointed its co-founder and promoter Rahul Bhatia as the Managing Director (MD) of the company.
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