Rakesh Gangwal stands by current shareholders’ agreement, no interest in controlling Indigo, says CEO

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Updated: May 19, 2019 2:59:45 PM

Rahul Bhatia, his family and Interglobe Enterprises have around 38 per cent while Rakesh Gangwal, his family and his company RG Group have nearly 37 per cent as of March 31, as per the shareholding pattern disclosed by Interglobe Aviation.

Ronojoy Dutta said that the law firms have been on retainer by promoters since Indigo’s IPO in 2015.

Even though “there may be differences currently on certain matters” but there is no desire on part of Indigo’s co-promoter Rakesh Gangwal to seek control of the company, Indigo’s CEO Ronojoy Dutta said in a statement on Saturday addressing media reports on a possible disagreement between the two promoters — Rakesh Gangwal and Rahul Bhatia.

Dutta emphasized on Rakesh Gangwal’s statement, which he made on his behalf, that there is “no interest or desire whatsoever on the part of the RG (Rakesh Gangwal) Group to take control of the company.”

Indigo’s CEO also refuted the messaging with respect to RG Group attempts to renegotiate the shareholders’ agreement (SHA) saying that “the RG Group stands by the current SHA which, in any case, expires this October.”

Rahul Bhatia and his family along with the holding company Interglobe Enterprises have around 38 per cent while Rakesh Gangwal, his family and the company RG Group have nearly 37 per cent as of March 31, as per the shareholding pattern disclosed by Interglobe Aviation.

An ongoing renegotiation of the SHA primarily around the disproportionate distribution of board and management appointment rights between the two promoters was learnt to be the basis for the rift, The Indian Express had reported on Friday.

However, Interglobe Enterprises could nominate three non-independent directors while RG Group could nominate only one, as per the agreement, upon listing of the company, The Indian Express reported.

“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,” Dutta added in the statement.

The CEO also underscored that the law firms have been on retainer by promoters since Indigo’s IPO in 2015 instead of being “seen as a new revelation.” Interglobe Enterprises is represented by J. Sagar Associates while the RG Group is represented by 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,” said Dutta.

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