IndiGo concedes to promoter Gangwal's demand for EGM

Mumbai: In signs that promoters' feud are far from over, InterGlobe Aviation on Friday announced convening a meeting of shareholders on January 29, at the request of co-promoter Rakesh Gangwal, for removing various provisions in a key document of the company.

The extraordinary general meeting (EGM) would discuss deleting various Articles pertaining to transfer and acquisiton of the company's shares, including 'Right of First Refusal' and ' Tag Along Right', in the company's Articles of Association (AoA).

The development comes more than six months after Gangwal flagged concerns over corporate governance lapses at InterGlobe Aviation, the parent of the country's largest airline IndiGo.

The meeting is being convened on January 29 following request by Rakesh Gangwal (RG) Group and related entities who together hold 36.64 per cent stake in the company, a regulatory filing said on Friday.

The group comprises Rakesh Gangwal, Shobha Gangwal and The Chinkerpoo Family Trust (Trustee: Shobha Gangwal and J P Morgan Trust Company of Delaware).

The differences between co-founders and co-promoters -- Rakesh Gangwal and Rahul Bhatia -- came to the fore in July 2019 after Gangwal sought market regulator Sebi's intervention to address alleged corporate governance lapses at the company.

In the wake of the feud, arbitration proceedings are also going overseas between the two promoters' sides.

Bhatia and affiliates -- InterGlobe Enterprises (IGE) Group -- has around 38 per cent stake in the company.

On December 24, a request for EGM was made by Gangwal and the company's Board of Directors, on December 31, approved convening such a meeting.

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