InterGlobe Aviation is the parent of the country's largest airline IndiGo.
The board of InterGlobe Aviation Friday discussed a “range of issues”, including appointment of a woman director, and the meeting will continue on Saturday, the company’s CEO Ronojoy Dutta said. The board meet also comes against the backdrop of an ongoing spat between promoters Rakesh Gangwal and Rahul Bhatia over alleged corporate governance lapses. Dutta also asserted that there is absolutely no disagreement between the promoters over the airline’s growth strategy.
InterGlobe Aviation is the parent of the country’s largest airline IndiGo. During a conference call to discuss the June quarter financial results, Dutta said the board meeting would continue on Saturday. “The board in its meeting today had a discussion on appointment of an independent woman director,” he said, adding that in order to induct a woman director, the Articles of Association (AoA) of the company has to be amended. “We are working on this and we hope to have a solution tomorrow,” he added.
After Gangwal sought Sebi’s intervention to address governance issues, the regulator is probing the matter. The corporate affairs ministry is also looking into the issue. “The board is having a full some discussion on all issues… The board covered a whole range of issues and will continue tomorrow,” Dutta said, adding that there were a number of committee meeetings, including the audit committee.
To a query on whether there are disagreements among the promoters over the airline’s international strategy, Dutta said there is absolutely no disagreement on international strategy. “When it comes to the overall strategy of the growth and international expansion, the two promoters are totally in sync and they have confirmed that again today in the board meeting. “Only issue is the disagreement with the agreement between the two promoters. It has nothing to do with the company and its strategy,” he noted.
About the EY report on the company, Dutta said it has been given to Sebi but there is no plan to make it public. Regarding the explanations sought by the ministry, Dutta said they are planned to be given by the end of next week, while responses to Sebi is going today. The company is chaired by former Sebi chief M Damodaran.
Apart from Gangwal, Bhatia and his wife Rohini Bhatia, former World Bank executive Anupam Khanna and chartered accountant Anil Parashar are board members. For three months ended June, InterGlobe Aviation reported its highest ever quarterly profit of Rs 1,203.14 crore.