Interglobe Aviation, the operator of the budget carrier IndiGo, has announced that Rakesh Gangwal, the Non-Executive, Non-Independent Director has quit from the company’s board with immediate effect.
In his resignation letter, Gangwal said that he will reduce his stake in the company over the next 5 years. Gangwal wrote, “I continue to be a big believer in the long-term prospects of IndiGo and more so now with the industry consolidation underway. Under this backdrop and in the long-term, Indian aviation should prosper, as in various other parts of the world.”
He co-founded IndiGo with Rahul Bhatia with having nearly three-fourth stake in the company. However, both have been at loggerheads for a while. Gangwal’s resignation further highlights the differences between the co-founders.
Gangwal, in his resignation letter, added, “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. Accordingly, my current intention is to slowly reduce my equity stake in the Company over the next 5 plus years.”
While new investors should benefit from the potential future growth in the Company’s share price, a gradual reduction of my stake should also allow me to benefit from some of the upside. Like any plan, future events may impact my current thinking, he further stated.
Earlier this month, the airline named Bhatia as the company’s managing director.
Meanwhile, earlier today, IndiGo took a step towards going green as it informed that its first-ever aircraft from Airbus operating on sustainable aviation fuel (SAF) landed in New Delhi. The plane had taken off from France on Thursday.
