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Rahul Bhatia may back Gangwal on IndiGo exit norm relaxation, says report

Updated : January 27, 2020 02:20 PM IST

The proposed resolution seeks relaxation of rules on the sale and purchase of shares by its main shareholders, making it easier for the promoters to raise or cut stake in the company.

Support from Bhatia, who owns around 38 percent in the company is crucial when the proposal will be discussed during the extraordinary general meeting (EGM) on IndiGo on January 29.

Rahul Bhatia-owned InterGlobe Enterprises (IGE) is likely to support the proposed resolution by co-promoter Rakesh Gangwal seeking exit norm relaxation, reported Business Standard.

The proposed resolution seeks relaxation of rules on the sale and purchase of shares by its main shareholders, making it easier for the promoters to raise or cut stake in the company, said the report. But for any such resolution to pass 75 percent of shareholder support is required, the report added.

Support from Bhatia, who owns around 38 percent in the company is crucial when the proposal will be discussed during the extraordinary general meeting (EGM) on IndiGo on January 29, the report said.

“It is a good sign for investors. The resolution having the IGE group’s support means that the promoters have mutually discussed the issue and Bhatia is willing to give an opportunity to Gangwal for cashing out. Considering that there is little chance of a hostile takeover, it is a positive move,” Sriram Subramaniam, head of InGovern, a shareholder advisory firm was quoted as saying in the report.

Though Gangwal has openly stated in the past that he will not dilute stake in the firm, he has involvement in the company has decreased considerably since the beginning of his feud with Bhatia, the report said. This was further evident after many old parties seen close to Bhatia were re-appointed in key posts of the firm, the report said.

Rahul Bhatia may back Gangwal on IndiGo exit norm relaxation, says report

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