IndiGo CEO Assures Employees As Promoters Feud In Public: 10 Points
- In a letter to Sebi dated July 8, Mr Gangwal sought the market regulator's intervention, in a move that suggested that a previously reported row between the estranged co-founders was escalating. The market regulator asked the company to respond to the letter by July 19, according to a regulatory filing by InterGlobe Aviation on Tuesday.
- Reports of the alleged conflict between Mr Gangwal and Mr Bhatia first emerged in May this year, which were denied by the airline.
- "I have vigorously attempted for almost a year to persuade the company to shore up its governance standards, and all my attempts have been thwarted by the IGE Group," Mr Gangwal wrote in the letter, referring to Mr Bhatia's affiliate group. A copy of the letter was sent to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, among other ministers and bureaucrats.
- Even a "paan ki dukaan" (betel shop) would have managed matters "with more grace", Mr Gangwal wrote while referring to various events at the company.
- Mr Gangwal accused Mr Bhatia and his firms of indulging in questionable related-party transactions, and proposed an extraordinary general meeting with shareholders.
- "Various fundamental governance norms and laws are not being adhered to and this is inevitably going to lead to unfortunate outcomes, unless effective measures are taken today," he wrote.
- Mr Bhatia had opposed the proposal in a letter to the board in June, alleging that the genesis of Mr Gangwal's angst was his "hurt ego" and refusal of IGE Group to entertain his "unreasonable demands".
- At the end of the quarter ended March 31, InterGlobe Aviation's group of promoters held a 74.93 per cent stake in the company. Of this, Mr Gangwal and his affiliates hold around 37 per cent, whereas around 38 per cent is with Mr Bhatia and his affiliates.
- InterGlobe shares nosedived to their lowest intraday level recorded since March, and were on course to register their worst single-day decline since January 2016.
- On the NSE, the InterGlobe stock fell as much as 19.25 per cent during Wednesday's session. The shares dropped 17.55 per cent on the BSE. At 11:26 am, the stock traded 11.68 per cent lower at Rs 1,382.80 apiece on the BSE, sharply underperforming the Sensex benchmark index which was down 0.15 per cent.
(With inputs from agencies)
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