BENGALURU (Reuters) -IndiGo co-founder Rakesh Gangwal has resigned from the board and is planning to cut his stake in the airline over the next five years, its parent InterGlobe Aviation said in an exchange filing on Friday.
Gangwal and his family owns 36.61% stake in the parent company, while another co-founder and managing director Rahul Bhatia and his family owns about 37.8%, giving them both a major say in the carrier’s strategy.
The two had engaged in a spat in early 2020 when Gangwal sought to modify certain rules in the company’s articles of association.
A non-executive director, Gangwal had alleged violations in corporate governance rules at the parent group and wanted to remove an article that prevented co-founders from buying publicly-listed shares in InterGlobe and potentially trigger an open offer for the rest of the company.
In December last year, the shareholders of the parent company approved changes to articles of association, including scrapping rules that restricted sale or transfer of shares to a third party.
“I have been a long-term shareholder in the company for more than 15 years and it’s only natural to someday think about diversifying one’s holdings,” Gangwal said in a letter to the board of InterGlobe Aviation.
Gangwal said he was stepping down immediately as he did not want to hold access to unpublished price sensitive information while he began trimming his stake in the company.
An American and aviation industry veteran, Gangwal has spent several years in senior roles at United Airlines and U.S. Airways, while Bhatia runs things on the ground in India.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Arun Koyyur)
