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<ul><li><keyword id="6354706" type="DEFINITION" weightage="20" keywordseo="IndiGo">Indigo</keyword> co-founder <keyword id="843530" type="PERSON" weightage="20" keywordseo="Rakesh-Gangwal">Rakesh Gangwal</keyword> has called for an exceptional general meeting of the board.</li><li>He’s pushing for a resolution that would allow him to sell his stake in the airline without seeking the permission of his partner and the one who’s feuding against – Rahul Bhatia. </li><li>Shares of Interglobe Aviation jumped 3.08% to ₹1374, as hopeful investors think the feud might finally be coming to an end. </li></ul>It’s a new year and the saying to keep your problems in the old one - doesn’t seem to suit Rakesh Gangwal. The US-based billionaire Indigo co-founder has called for an exceptional general meeting of the board. He is pushing for a resolution that would allow him to sell his stake in the airline without seeking the permission of his partner and the one he’s fighting with – Rahul Bhatia. The war of the founders is another blow to the Indian aviation industry where many carriers are in trouble – from Jet Airways shutting shop to a debt ridden Air India struggling to make ends meet. But the news of the meeting made Indigo investors happy. Shares of Interglobe Aviation jumped 3.08% to ₹1374, as hopeful investors think the feud might finally be coming to an end. This could also lead to the possibility of an existing promoter leaving or a strategic investor coming on board. The call for the meeting could be Gangwal’s indication that he is giving up on a fight that has lasted for at least a year now. Or it could be his last try to have a greater say on the board, says an aviation expert. <table><tbody><tr><td></td><td>Name of the Shareholder</td><td>Shares</td><td>Percentage of total</td></tr><tr><td>1.</td><td>Rohini Bhatia</td><td>10,000</td><td>0</td></tr><tr><td>2.</td><td>INTERGLOBE ENTERPRISES PRIVATE LIMITED</td><td>145,706,774</td><td>37.88</td></tr><tr><td>3. </td><td>Shobha Gangwal</td><td>32,310,461</td><td>8.4</td></tr><tr><td>4.</td><td>The Chinkerpoo Family Trust (Trustee: Shobha Gangwal &amp; J. P. Morgan Trust Company of Delaware)</td><td>52,263,313</td><td>13.59</td></tr><tr><td>5.</td><td>Rakesh Gangwal</td><td>56,421,132</td><td>14.67</td></tr><tr><td>6.</td><td>Kapil Bhatia</td><td>50,000</td><td>0.01</td></tr><tr><td>7.</td><td>Rahul Bhatia</td><td>40,000</td><td>0.01</td></tr><tr><td>8.</td><td>Asha Mukherjee</td><td>1,250,688</td><td>0.33</td></tr><tr><td>9.</td><td>Alok Mehta</td><td>255</td><td>0</td></tr></tbody></table> “Gangwal probably tried to make it a reasonable bargain in terms of having a say in what is going on. He is talking about improving the governance – an equal number of people representing major shareholders. If that doesn’t happen, he will keep his options open. We have to wait for the meeting to understand more and see what really happens,” Amrit Pandurangi, an aviation expert told Business Insider. The logic behind the EGM Experts believe that Gangwal hopes that with this EGM, members of the board will understand his logic or argument. He will insist that special policy decisions or strategy decisions have to be taken when the full board is present. Earlier, Gangawal raised questions on the governance of Indigo and related party transactions. “Suppose he does not have this, even if he wants to exit he would like to do this from a position of strength rather than as somebody who did not get support and is that’s why moving out. But whether he wants to or not, remains to be seen. We should not look so far yet,” said Pandurangi. ‘Lack of checks and balances’ In June last year, Gangwal wrote to the Securities and Exchange Board of India (SEBI), alleging multiple violations at Indigo. This led to the differences between Gangwal and Bhatia coming out in the open. Gangwal had then written that he had entered into a shareholder’s agreement with Bhatia, which gave the latter controlling rights over the majority of decisions at Indigo. “I hadn't contemplated that over the years, Bhatia would start building an ecosystem of other companies that would enter into dozens of related party transactions with IndiGo. We are not against RPTs as long as proper checks and balances exist and such RPTs are in the best interest of the Company,” Gangwal <a href="https://www.cnbctv18.com/aviation/read-full-text-of-indigo-co-founder-rakesh-gangwals-letter-to-sebi-3948801.htm">wrote in the letter.</a> SEE ALSO <a href="https://www.businessinsider.in/business/news/without-buyer-ai-might-be-forced-to-shut-down-in-six-months-airline-official/articleshow/73031626.cms">Air India might shut down in 6 months if it isn't sold, says official</a> <a href="https://www.businessinsider.in/careers/news/india-has-made-commercial-pilot-licences-faster-and-easier-to-beat-the-shortage-in-airlines-most-expensive-asset/articleshow/73032441.cms">India has made commercial pilot licences faster and easier to beat the shortage in airlines' most-expensive asset</a>

One of Indigo’s promoters – Rakesh Gangwal – wants more say or a way out

New Delhi, Jan 29 () Shareholders of InterGlobe Aviation, the parent company of Indigo airline, on Wednesday rejected a special resolution of co-promoter Rakesh Gangwal to amend the company's Articles of Association (AoA).
 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 said in a BSE filing after the extraordinary general meeting held here on Wednesday.
 Rahul Bhatia and affiliates -- InterGlobe Enterprises (IGE) Group -- has around 38 per cent stake in the company and Rakesh Gangwal and his related entities own around 36.64 per cent stake.
 As per the AoA, if any member of Rahul 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 -- Rakesh Gangwal and Rahul 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. In the wake of the feud, arbitration proceedings are also going overseas between the two promoters' sides. DSP MR

IndiGo EGM: Shareholders reject co-promoter Gangwal's special resolution to amend AoA

<ul><li>The country’s largest airline <keyword id="6354706" type="COMPANY" weightage="20" keywordseo="IndiGo">IndiGo</keyword>’s shares crashed 10.7% to ₹ 1,397 on Wednesday’s closing. </li><li>Gangwal, one of the co-founders of IndiGo, wrote to the markets regulator SEBI seeking intervention on curbing possible governance violations by Bhatia. </li><li>As per Gangwal’s allegations, Bhatia’s InterGlobe Enterprises (IGE) unduly has received benefits from faulty transactions which had <a href="https://www.moneycontrol.com/news/business/companies/the-indigo-rift-with-this-20b-deal-did-rahul-bhatia-leave-rakesh-gangwal-with-a-hurt-ego-4188841.html">violated company norms</a>. </li></ul>The country’s largest airline IndiGo’s shares crashed 10.7% to ₹ 1,397 on Wednesday’s closing, thanks to the very public fight between its two promoters--Rahul Bhatia and <keyword id="843530" type="PERSON" weightage="20" keywordseo="Rakesh-Gangwal">Rakesh Gangwal</keyword>. It also touched lower circuit and the volumes also swelled probably due to large number of people selling the stock. Gangwal, one of the co-founders of IndiGo, wrote to the markets regulator SEBI seeking intervention on curbing possible governance violations by Bhatia, a stock exchange notification said. As per Gangwal’s allegations, Bhatia’s InterGlobe Enterprises (IGE) unduly has received benefits from faulty transactions which had <a href="https://www.moneycontrol.com/news/business/companies/the-indigo-rift-with-this-20b-deal-did-rahul-bhatia-leave-rakesh-gangwal-with-a-hurt-ego-4188841.html">violated company norms</a>. IGE is the parent company of IndiGo which also has hospitality, flight training and other aviation related businesses. The friends-turned-partners-turned-foes had joined hands in 2005 to form IndiGo airlines. Now, they own almost equal stake in the company, making it a long and tough fight. Bhatia and his family own 38% of the IndiGo shares while Gangwal had 37% shareholding. Bhatia however has controlling rights of the company and also a greater say in decision making, which includes appointing senior company management. The deal that drifted them apart A drift developed between the promoters after the company struck a $20 billion deal with US based CFM international for LEAP-1A engines in June. The engines are to be used in Indigo’s future fleet of 280 Airbus 320 and 321 aeroplanes. The deal was finalised after many flight disruptions were reported in the Pratt and Whitney engines, which it had been using since inception. “This was a huge change. Pratt and Whitney was supplying the engines since start of Indigo. Of course, P&amp;W engines had major problems with the Neos,” said a senior executive from the aviation industry. Hurt Egos In June, Gangawal sought a requisition for an extraordinary general meeting (EGM) to highlight governance issues. However, Bhatia alleged that his partners wants him to dilute his rights. “The genesis of Mr. Gangwal’s angst lies elsewhere - the refusal of the IGE Group to succumb to his demands to dilute the IGE Group’s controlling rights,” Bhatia said. He added that, “Gangwal’s ego was hurt on realizing that upon his refusal to lend in the company’s ongoing negotiations with Original Equipment manufacturers (OEMs), the company had proceeded to make alternate arrangements for the purpose.”

IndiGo’s shares crash to a new low after a promoter alleges the other of governance violations

New Delhi, Jan 27 () "You don't see the board room issues impacting the performance of the airline," civil aviation minister Hardeep Singh Puri said on Monday over differences between promoters at IndiGo, which is the country's largest airline.
His remarks came during a briefing about Air India disinvestment in response to a query on whether sentiments could be impacted as the sale is also happening at a time when there is a possibility of a promoter exiting IndiGo.
"I see no difficulties...," the Minister of State for Civil Aviation said about the possible impact of IndiGo issue on Air India stake sale.
The government on Monday issued a Preliminary Information Memorandum (PIM) for 100 per cent stake sale in Air India.
The differences between co-founders and co-promoters -- Rakesh Gangwal and Rahul 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. In the wake of the feud, arbitration proceedings are also going overseas between the two promoters' sides.
"IndiGo is an internal matter. They will get it resolved... it is the largest domestic carrier, it has 300 aircraft on order, you don't see the board room issues impacting the performance of the airline," the minister said.
Responding to the query, Civil Aviation Secretary Pradeeh Singh Kharola said the impact of IndiGo is totally an internal thing.
"If you see, this has been going on for so many months... Performance of IndiGo has not been affected. It is purely an internal matter and they are handling it," he noted.
Against the backdrop of the feud between the promoters, InterGlobe Aviation will convene a meeting of shareholders on January 29, at the request of Gangwal, for removing various provisions in a key document of the company.
The extraordinary general meeting (EGM) would discuss deleting various Articles pertaining to transfer and acquisition of the company's shares, including 'Right of First Refusal' and ' Tag Along Right', in the company's Articles of Association (AoA).
In November 2019, IndiGo CEO Ronojoy Dutta in November 2019 said there was "zero impact" on the carrier right now as they are on the same page over the airline's strategic direction, while commenting on the differences between the promoters.
On Monday, IndiGo's parent InterGlobe Aviation reported a steep jump in profit after tax at Rs 496 crore in the three months ended December 2019.
In the year ago period, the same stood at Rs 185.2 crore.
Shares of the company closed marginally lower at Rs 1,492.85 on the BSE. RAM BAL

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One of Indigo’s promoters – Rakesh Gangwal – wants more say or a way out

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IndiGo EGM: Shareholders reject co-promoter Gangwal's special resolution to amend AoA

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IndiGo’s shares crash to a new low after a promoter alleges the other of governance violations

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Don't see board room issues impacting IndiGo's performance: Puri

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