IndiGo co-promoter Rakesh Gangwal on Friday resigned from the board of directors of parent company InterGlobe Aviation Ltd and said he would gradually reduce his equity stake in the company over the next five years.
Mr. Gangwal and his associates hold 36.61 per cent stake in InterGlobe. He was a non-executive, non-independent director on the board.
“I have been a long-term shareholder in the company for over 15 years and it is natural to think of diversifying one’s holdings someday. Accordingly, my current intention is to gradually reduce my equity stake in the company over the next five years. – plus year, however future events may affect my current thinking,” Mr. Gangwal said in a statement shared by the company on BSE’s website.
He explained that he was resigning from the board because he “did not want to be privy to unpublished price sensitive information (UPSI) when he was looking to reduce his stake.
He said, “I am concerned about the optics of reducing my holding, even though such a transaction will only be undertaken if I do not have any unpublished Price Sensitive Information (UPSI). Sadly, and effective immediately, I am stepping off the board,” he said. , adding that he may consider participating as a member of the Board at some point in future.
The latest move follows the removal of the clause from the shareholder’s agreement in December last year that had become a thorn in the ties between Rakesh Gangwal and co-promoter Rahul Bhatia. IndiGo shareholders voted in December to remove the clause from the Articles of Association that requires a promoter to seek permission from another when selling shares to a third party and also grants them a right of first refusal during a stake sale. Is.
The dispute between the two promoters became public in July 2019, when Mr. Gangwal wrote to markets regulator SEBI, seeking intervention in the alleged misrule in the company and Mr. Bhatia’s control of the airline.