Rakesh Gangwal, co-founder of IndiGo airlines, tendered his resignation on Friday, effective immediately.
In his resignation letter, Gangwal explained that he will gradually reduce his stake in IndiGo’s parent company, InterGlobe, over the next five years.
Also read: Punjab Assembly elections 2022: 5 constituencies to watch out for
Gangwal and his family own 36.61 percent of the parent firm, while Rahul Bhatia and his family own roughly 37.8 percent, giving them both a significant say in the carrier’s strategy.
In early 2020, the two had a fight about Gangwal’s request to change some provisions in the company’s articles of association.
Gangwal, a non-executive director, had accused the parent firm of breaking corporate governance standards and wanted to delete a clause that banned co-founders from buying publicly traded InterGlobe shares, potentially triggering an open bid for the remainder of the company.
Also read: UP polls: With Akhilesh on the ballot, it’s SP vs BJP in key third phase
The parent company’s shareholders approved revisions to the articles of association in December of last year, including the removal of regulations prohibiting the sale or transfer of shares to a third party.
“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,” In a letter to InterGlobe Aviation’s board of directors, Gangwal stated.
Also read: 2008 Ahmedabad serial bomb blasts case verdict: 38 get death sentence
Gangwal claimed he was stepping down right away because he didn’t want to be in charge of unreleased price sensitive information while he was reducing his investment in the company.
Gangwal, an American and aviation industry veteran, spent several years in senior positions at United Airlines and United Airlines, while Bhatia is in charge of operations in India.