INTERNATIONAL – One of the co-founders of Indian airline IndiGo is seeking to modify rules on the sale and purchase of shares by its main shareholders amid a bitter spat with his founding partner in the country’s largest carrier.
Rakesh Gangwal, who co-founded IndiGo with Rahul Bhatia, is seeking to delete certain rules in the company's articles of association that give Bhatia the right of first refusal should Gangwal choose to sell his shares, a stock exchange filing here from parent group InterGlobe Aviation Ltd showed.
Gangwal, an American and aviation industry veteran who spent years in senior roles at United Airlines and US Airways, and Bhatia, who runs things on the ground in India, each control stakes of slightly less than 40 percent in InterGlobe along with their respective families, giving them both a major say in the carrier’s strategy.
Gangwal, who alleged violations of corporate governance rules at the parent group in July, also wants to remove an article that prevents either of the co-founders from buying publicly-listed shares in InterGlobe and potentially triggering an open offer for the rest of the company.
If the shareholders approve the amendments at a Jan. 29 extraordinary general meeting (EGM) requested by Gangwal, he or Bhatia could get a free hand to raise or cut stakes in the company.