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InterGlobe Aviation shares drop nearly 4 pc

Jan 30, 2020, 16:51 IST
PTI
New Delhi, Jan 30 () Shares of InterGlobe Aviation fell nearly 4 per cent on Thursday after the company's shareholders rejected a special resolution of co-promoter Rakesh Gangwal to amend the company's Articles of Association (AoA).

The scrip declined 3.18 per cent to close at Rs 1,415.70 on the BSE. During the trade, it dropped 3.90 per cent to Rs 1,405.10.

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At the NSE, it fell 3.66 per cent to close at Rs 1,408.50.

Gangwal had sought removal of articles pertaining to transfer and acquisition of the company's shares, including 'Right of First Refusal' and 'Tag Along Right'.

"The Special Resolution has not been passed as the votes cast in favour (48.55 per cent) of the resolution are less than three times the number of votes cast against (51.44 per cent) the resolution," InterGlobe Aviation, which runs IndiGo, said in a BSE filing after the extraordinary general meeting held here on Wednesday.

Rahul Bhatia and affiliates -- InterGlobe Enterprises (IGE) Group -- have around 38 per cent stake in the company, while Gangwal and his related entities own around 36.64 per cent stake.

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As per the AoA, if any member of Bhatia-led IGE Group wants to transfer shares to a third party, then the non-transferring group will have the 'Right of First Refusal' subject to certain conditions.

Similarly, the non-transferring group will also have the 'Tag Along Right' wherein it would have the option to sell some part of the shareholding.

The differences between co-founders and co-promoters -- Gangwal and Bhatia -- came to the fore in July 2019 after Gangwal sought market regulator Sebi's intervention to address alleged corporate governance lapses at the company. SUM RVK

(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)
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