New Delhi: IndiGo’s co-founder Rakesh Gangwal on Friday (February 18) resigned from the board of directors of the airline’s parent company InterGlobe Aviation.
In a letter to the board members, Rakesh, the non-executive, non-independent director of InterGlobe Aviation, announced his decision. He also mentioned that he will reduce his equity in the company over the next five-plus years.
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“I continue to be a big believer in the long-term prospects of IndiGo and more so now with the industry consolidation underway. Under this backdrop and in the long-term, Indian aviation should prosper, as in various other parts of the world,” Rakesh wrote in the letter.
Further, he continued, “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.”
He added, “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about the optics of reducing my holdings even though such transactions would only be undertaken when I do not have any unpublished price sensitive information (UPS). 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.
“After considerable thought, I see only one 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. Sometime in the future, I shall consider participating again as a board member.”
Here is a copy of Rakesh Gangwal’s letter.