New Delhi: Faced with the prospect of real competition in Indian skies next year when Tatas start running Air India, IndiGo parent company InterGlobe Aviation may finally see the long-standing feud between its two founder-promoters - Rahul Bhatia and Rakesh Gangwal - getting resolved. An extraordinary general meeting (EGM) has been called at their behest on December 30, to remove restrictions on stake sale by one promoter, which at present is not possible without the consent of the other. Together, the two hold 74.4% of the company's paid-up equity share capital.
In a filing, the company says it "received a joint requisition" on November 25, 2021, "for removing the transfer restriction articles from articles of association of the company". The articles being sought to be removed require: "If any member of RG (Rakesh Gangwal) Group or IGE (Rahul Bhatia) Group proposes to transfer any of its equity shares to a third party, the other group shall have the right at its sole discretion to: Purchase the transfer shares... or tag along..."
Other article says that if one group transfers shares other than on a stock exchange, it should first inform the other group about the same and discloses the identity of the proposed purchaser. The other party, according to articles which are sought to be removed, shall have options like right of first refusal to purchase and asking the purchasing party to take equal number of shares from both groups.
The Gangwal and Bhatia groups have been at loggerheads for over four years now. While publicly the company maintains that the dispute between the promoters does not affect its working, the industry wants the fight to end as the duo had created what in pre-pandemic times was India's only profitable airline. During Covid, IndiGo has also flown in deep red.
07/12/21 Times of India
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