There have been various press reports about potential disagreements between the two promoters of IndiGo, Rahul Bhatia and Rakesh Gangwal. These reports have in turn fueled further speculation as to what those areas of disagreements could be including future direction of the company, management changes, control issues and the like. I would like to forcefully address these baseless speculations as they are not in the best interests of our shareholders, our employees and the travelling public.
The hiring of law firms: It is true that the IGE group is represented by the law firm of JSA and the RG Group is represented by the law firm of Khaitan & Company. These prestigious law firms have been on retainer by the founders since at least the time of the IPO of the Company in 2015 and they continue to represent the promoters on various ongoing matters as it relates to their shareholding in IndiGo. Thus, the 4 year old ongoing retainer history of the law firms should not be presented or seen as a new revelation.
Management changes: It is true that IndiGo has gone through a number of changes in a continuum that stretches from Aditya Ghosh, to Greg Taylor to a team of highly skilled expatriates to me. I can state unequivocally that every one of these senior leaders contributed a great deal to IndiGo and we are truly grateful for their contributions. But all great companies go through periods of transition as they evolve from one phase of their growth to another and a little bit of turbulence during these transition phases is neither unusual nor unwelcome. Most importantly, the promoters and the Board have worked as a team in making these management changes. We would urge the press not to confuse every management change as a sign of dissonance at the top.
Control issues: There has been some speculation that perhaps some disagreement centers round the RG Group seeking to acquire more control of the management and the Board. I am authorized by Mr. Rakesh Gangwal to make the following statement on his behalf - "I am categorically and clearly stating that there is no interest or desire whatsoever on the part of the RG Group to take control of the company. Also, to put to rest the messaging on the fact that the RG Group is attempting to renegotiate the Shareholders Agreement, I am placing on record that the RG Group stands by the current SHA which, in any case, expires this October". I don't think Mr. Gangwal could have been more clear and explicit on his intentions and I thank him for authorizing me to make this statement on his behalf.
19/05/19 Equity Bulls
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The hiring of law firms: It is true that the IGE group is represented by the law firm of JSA and the RG Group is represented by the law firm of Khaitan & Company. These prestigious law firms have been on retainer by the founders since at least the time of the IPO of the Company in 2015 and they continue to represent the promoters on various ongoing matters as it relates to their shareholding in IndiGo. Thus, the 4 year old ongoing retainer history of the law firms should not be presented or seen as a new revelation.
Management changes: It is true that IndiGo has gone through a number of changes in a continuum that stretches from Aditya Ghosh, to Greg Taylor to a team of highly skilled expatriates to me. I can state unequivocally that every one of these senior leaders contributed a great deal to IndiGo and we are truly grateful for their contributions. But all great companies go through periods of transition as they evolve from one phase of their growth to another and a little bit of turbulence during these transition phases is neither unusual nor unwelcome. Most importantly, the promoters and the Board have worked as a team in making these management changes. We would urge the press not to confuse every management change as a sign of dissonance at the top.
Control issues: There has been some speculation that perhaps some disagreement centers round the RG Group seeking to acquire more control of the management and the Board. I am authorized by Mr. Rakesh Gangwal to make the following statement on his behalf - "I am categorically and clearly stating that there is no interest or desire whatsoever on the part of the RG Group to take control of the company. Also, to put to rest the messaging on the fact that the RG Group is attempting to renegotiate the Shareholders Agreement, I am placing on record that the RG Group stands by the current SHA which, in any case, expires this October". I don't think Mr. Gangwal could have been more clear and explicit on his intentions and I thank him for authorizing me to make this statement on his behalf.
19/05/19 Equity Bulls
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