IndiGo’s promoters have tweaked the airline’s shareholding structure to create headroom for roping in foreign investors. US-based airline veteran Rakesh Gangwal, who held 47.88 per cent in the airline through US-based Caelum Investment, will now hold this stake in his personal capacity.
The changes followed the merger of Caelum Investment with Interglobe Aviation, which operated the airline, IndiGo said in a filing with the Registrar of Companies.
The changes, carried out through the past few months, were necessitated because government rules cap foreign investment in domestic airlines at 49 per cent. The move, observers say, is aimed at enabling the sale of shares to foreign investors through a possible initial public offering (IPO).
Gangwal is a non-resident Indian and under current norms, NRIs are allowed up to 100 per cent investment in an airline. Gangwal, the former chief executive of US Airways, is considered the brains behind Indigo’s success. Since the airline’s inception, Caelum has held 47.88 per cent stake, while Delhi-based Rahul Bhatia owned 51.12 per cent in the no-frills airline.
12/06/15 Aneesh Phadnis/Business Standard
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The changes followed the merger of Caelum Investment with Interglobe Aviation, which operated the airline, IndiGo said in a filing with the Registrar of Companies.
The changes, carried out through the past few months, were necessitated because government rules cap foreign investment in domestic airlines at 49 per cent. The move, observers say, is aimed at enabling the sale of shares to foreign investors through a possible initial public offering (IPO).
Gangwal is a non-resident Indian and under current norms, NRIs are allowed up to 100 per cent investment in an airline. Gangwal, the former chief executive of US Airways, is considered the brains behind Indigo’s success. Since the airline’s inception, Caelum has held 47.88 per cent stake, while Delhi-based Rahul Bhatia owned 51.12 per cent in the no-frills airline.
12/06/15 Aneesh Phadnis/Business Standard
