IndiGo’s non-executive, non-independent director Rakesh Gangwal has resigned from the company’s board of directors. His resignation came into force with immediate effect.
IndiGo’s non-executive, non-independent director Rakesh Gangwal has resigned from the company’s board of directors.
indigo ,indigo, Rakesh Gangwal, non-executive, non-independent director of (Rakesh Gangwal) resigned from the board of directors of the company (Resignation) have given. His resignation came into force with immediate effect. In his resignation, Gangwal has said that he will keep his stake in the company in the next five years. (Stake) will gradually decrease. About two weeks ago, Rahul Bhatia took over as the Managing Director of the airline. He has been having a fight with Bhatia for a long time. He said in his resignation that he has been a long-term shareholder in the company for more than 15 years. He said it is common that one can diversify his stake.
Gangwal, in his resignation letter, said that he is, however, concerned about reducing his stake, as such transactions are possible only when he does not have any unpublished price information.
Gangwal and his family hold 36.61%
Gangwal and his family hold 36.61 per cent stake in India’s largest airline by market share. As on Friday’s close, by market capitalization, the stake stands at around Rs 29,000 crore.
On 4 February, IndiGo co-founder Rahul Bhatia took over as the company’s managing director. IndiGo has never had a Managing Director. Ronojoy Dutta is the CEO of the airline.
Earlier last month, IndiGo shareholders approved a resolution to amend the company’s Articles of Association, one of which gave a founder the first right to buy other shares in the company if the latter decides to sell. .
Long standing dispute between Bhatia and Gangwal
This happened after years of feud between Bhatia and co-founder Gangwal. Gangwal had stopped participating in the operational and financial decisions of the airlines.
There is a big fight going on between Bhatia and Gangwal for the last three years. The legal battle between the promoters began on 8 July 2019, when Gangwal wrote a letter to the Securities and Exchange Board of India (SEBI), the Prime Minister’s Office and the Ministry of Finance. He had sought intervention on several corporate governance issues and the Bhatia Group’s control over the airline.