The two groups collectively hold 74.4% stake in InterGlobe Aviation (IGA, parent company of IndiGo) almost equally. The end of the war of attrition means the Big Blue airline can take on upcoming challenges like the mega Tata-Air India airline being formed next year and the entry of the Big Bull in Indian skies.
“…Members of the company at the EGM held on December 30, 2021, have approved the special resolution for amendment to the Articles of Association by deletion of articles 1.6 to 1.15 (transfer of equity shares), 1.16 to 1.20 (acquisition of shares) and 2A (other provisions on equity shares), with requisite majority,” IGA said in a regulatory filing.
The EGM was called at the joint request of the two.
The articles removed required, among other things, that “if any member of RG (Rakesh Gangwal) Group or IGE (Rahul Bhatia) Group proposes to transfer any of its equity shares to a third party, the other group shall have the right at its sole discretion to: Purchase the transfer shares… or tag along…” Other now-deleted articles said that if one group transfers shares other than on a stock exchange, it should first inform the other group about the same and disclose the identity of the proposed purchaser. And, the other party till Friday had options like right of first refusal to purchase and asking the purchasing party to take equal number of shares from both groups.
“This entire fight was essentially an ego issue between Bhatia and Gangwal who used to be great friends not so long ago and created India’s biggest and most successful airline in contemporary times. While the stake sale nod requirement is gone, it is unlikely the Gangwal Group will exit IndiGo or substantially dilute its holding. We hope they come together for next round of the airline’s growth and the warning of ‘dual input’ in IndiGo’s cockpit ends,” said an industry insider.