Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

Airlines / Aviation

The Economic Times
11,047.8018.4
Stock Analysis, IPO, Mutual Funds, Bonds & More

Rakesh Gangwal won't sell IndiGo stake in feud with Rahul Bhatia

“I have no desire to sell my stake or raise my stake,”IndiGo's co-founder Rakesh Gangwal said.

Bloomberg|
Updated: Jul 16, 2019, 06.38 PM IST
0Comments
BCCL
IndiGo-
Gangwal, teamed up with Bhatia -- a former airline sales agent -- to create IndiGo in 2005.
By Anurag Kotoky

Rakesh Gangwal, the co-founder of IndiGo, said he won’t sell his shareholding in India’s largest airline and will maintain his stake amid a feud with his partner Rahul Bhatia.

“I am here for the long haul,” Gangwal, who has accused Bhatia of corporate governance lapses, said by phone. “I have no desire to sell my stake or raise my stake.”

Gangwal, teamed up with Bhatia -- a former airline sales agent -- to create IndiGo in 2005, which quickly outpaced rivals to control almost half of the local market, and made both the founders billionaires. Once the chief executive officer at US Airways, Gangwal and his affiliates, own 37% of InterGlobe Aviation Ltd., which operates IndiGo, while his partner’s company holds a little more at 38%. A representative for Bhatia’s InterGlobe Enterprises Ltd. didn’t immediately respond to a request seeking comments.

The primary reason for the fight is the controlling rights held by Bhatia which Gangwal alleges allows his partner to push through related-party transactions in violation of rules. Bhatia’s firm, which has interest in a chain of hotels across India, has said all transactions are executed at an arms’ length basis and in a transparent manner.

“IndiGo has become too big and too critical a company for the country. It is bigger than me, it is bigger than Rahul Bhatia,” Gangwal said. “I am focusing on governance issues that have gone awry in this company and I am not seeking any additional control in the company.”
0Comments

Also Read

Rivals spreading a false narrative, says IndiGo Rakesh Gangwal

IndiGo: Could this get Rakesh Gangwal to patch up with Rahul Bhatia?

Need systems to prevent Interglobe Enterprise from getting more authority: Rakesh Gangwal

IndiGo co-promoter Rakesh Gangwal refutes reports of truce with Rahul Bhatia

Don't hide behind 'unnamed sources': Rakesh Gangwal's fresh retort in spat with Rahul Bhatia

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service