As a the result of a long-running spat between IndiGo’s co-founders, Rakesh Gangwal and Rahul Batia, parent company Interglobe Aviation has called an extraordinary general meeting for January 29 to give consideration to a proposal by Rakesh Ganwal who, with the Chinkerpoo family trust and Shobha Gangwal, holds a 37% stake in the company through the RG Group.
Gangwal wants to amend IndiGo’s articles of association covering rules around the sale and acquisition of shares by its two major shareholders, making it easier for either party to sell or increase their stake in the Indian low-cost carrier. Relations between the co-founders reached an all-time low in July 2019 when IndiGo published a 49-page document detailing Gangwal’s allegations of governance improprieties. Bhatia countered that Gangwal was using it as a ploy to take greater control of the carrier. As a consequence, Bhatia turned to the London Court of International Arbitration to resolve hostilities between himself and Gangwal.
In a stock market disclosure on January 3, Interglobe Aviation disclosed an EGM will be held on 29 January to “consider and, if thought fit, pass” a resolution amending the company’s articles of association.
Founded in 2005 and with its main hub at Delhi’s Indira Ghandi International Airport, IndiGo is India’s largest airline and is currently undergoing a massive expansion program as a result of the demise of Indian low-cost carrier Jet Airways in April 2019. Having placed an order for 300 Airbus A320neo Family aircraft in October 2019, Indigo currently operates more than 1,400 daily flights serving 83 destinations.
