New Delhi [India], February 18 (ANI): IndiGo's co-founder and co-promoter Rakesh Gangwal on Friday resigned from the company's board with immediate effect, barely two weeks after his partner Rahul Bhatia, with whom he has sparred for long, assumed the position of managing director.
In a letter addressed to the Board members, Gangwal also announced that he would gradually reduce his stake in the company.
On February 4, InterGlobe Aviation, the parent company of IndiGo, appointed its co-founder and co-promoter Rahul Bhatia as Managing Director.
"I have been a long-term shareholder in the Company for more than 15 years and it's only natural to someday think about diversifying one's holdings. Accordingly, my current intention is to slowly reduce my equity stake in the Company over the next 5 plus years. While new investors should benefit from the potential future growth in the Company's share price, a gradual reduction of my stake should also allow me to benefit from some of the upside. Like any plan, future events may impact my current thinking," Gangwal said in the letter.
"However, I am concerned about the optics of reducing my holdings even though such transactions would only be undertaken when I do not have any unpublished price sensitive information (UPSI). As you are aware, on an ongoing basis, the Company provides us information and some of this is UPSI. Being a co-founder, co-promoter and director, this issue takes on great significance," he said.
"After considerable thought, I see only clear path to address this issue. Regrettably, and effective immediately, I am stepping off the Board. Accordingly, I ask that no Company information be shared with me that is UPSI and, having stepped down as a director, there should be no reason to share such information," Gangwal said.
"Sometime in the future, I shall consider participating again as a board member," Gangwal said. (ANI)