 "Promoters give low-key IndiGo AGM a miss")
True to its low-cost business model, IndiGo — the most profitable airline in the country — kept its 13th annual general meeting (AGM) on Wednesday a low-key affair.
This was its first AGM since it went public last year.
With only about 200 shareholders attending, the meeting was over in less than hour. IndiGo President Aditya Ghosh was lauded for the consistently profitable performance of the company.
“All shareholders were pleased with Ghosh. He is the perfect man to drive the company’s strategy,” said Abhimanyu Bhatia, who has 400 IndiGo shares.
Promoters Rahul Bhatia and Rakesh Gangwal did not participate in the AGM. Close friends, the duo is credited with building the successful airline, which is at present worth about Rs 35,000 crore — many times more than the promoters’ initial investment.
InterGlobe, the airline’s holding company listed in the markets in a Rs 3,130 crore initial public offering last year — was the biggest initial share sale by an Indian firm since 2012—on demand led by financial institutions and rich individuals.
According to people who attended the meeting on Wednesday, the board faced a wide range of questions from the prospects of the A320 neo aircrafts to the company’s response to the regional connectivity scheme.
“The director replied to most of the queries, on the delay on acquiring the A320 neo. He said there have been discussions with both manufacturer Airbus and engine maker Pratt & Whitney and that the airline will end the year with 136 aircraft, as was mentioned earlier,” said a shareholder who came down from Pune to attend the meeting.
According to him, Ghosh announced the airline received its eight A320 neo on Tuesday, taking its fleet strength to 115.
In its earnings call for the fourth quarter (January to March) 2015-16, Ghosh had said it was weighing options of switching to CFM engines, as Pratt’s faced an issue which delayed the correct operating temperature.
The board of directors also faced questions from unhappy shareholders on the “paltry sum of dividend” given by the company.
“We are quite unhappy with the low quantum of divided, even after remaining profitable for subsequent quarters,” a shareholder said.
Ghosh was reported to have said the amount of dividend was in line with the company’s performance in the last financial year. For 2015-16, the company had recommended a dividend of Rs 15 per share. The shareholders also were anxious over the competitive environment in light of overcapacity in the prime routes.
“Ghosh said the company sees opportunity in the unchartered smaller cities of the country and assured us,” the shareholder said.
Bhatia, though, is not very happy with his returns from the Rs 4 lakh investment made during the IPO. “It has grown to only Rs 4,20,000 which is much lower than the dividend I earned from other stocks.”
The company scrip closed at Rs 883.40 on Wednesday, around the same price of Rs 868 the company initially listed.
Like any other AGM, there were demands of favours in the form of free tickets and special programmes for frequent flyers.
Ghosh declined the suggestions.
MEETING DOSSIER
This was its first AGM since it went public last year.
With only about 200 shareholders attending, the meeting was over in less than hour. IndiGo President Aditya Ghosh was lauded for the consistently profitable performance of the company.
“All shareholders were pleased with Ghosh. He is the perfect man to drive the company’s strategy,” said Abhimanyu Bhatia, who has 400 IndiGo shares.
Promoters Rahul Bhatia and Rakesh Gangwal did not participate in the AGM. Close friends, the duo is credited with building the successful airline, which is at present worth about Rs 35,000 crore — many times more than the promoters’ initial investment.
InterGlobe, the airline’s holding company listed in the markets in a Rs 3,130 crore initial public offering last year — was the biggest initial share sale by an Indian firm since 2012—on demand led by financial institutions and rich individuals.
According to people who attended the meeting on Wednesday, the board faced a wide range of questions from the prospects of the A320 neo aircrafts to the company’s response to the regional connectivity scheme.
“The director replied to most of the queries, on the delay on acquiring the A320 neo. He said there have been discussions with both manufacturer Airbus and engine maker Pratt & Whitney and that the airline will end the year with 136 aircraft, as was mentioned earlier,” said a shareholder who came down from Pune to attend the meeting.
According to him, Ghosh announced the airline received its eight A320 neo on Tuesday, taking its fleet strength to 115.
In its earnings call for the fourth quarter (January to March) 2015-16, Ghosh had said it was weighing options of switching to CFM engines, as Pratt’s faced an issue which delayed the correct operating temperature.
The board of directors also faced questions from unhappy shareholders on the “paltry sum of dividend” given by the company.
“We are quite unhappy with the low quantum of divided, even after remaining profitable for subsequent quarters,” a shareholder said.
Ghosh was reported to have said the amount of dividend was in line with the company’s performance in the last financial year. For 2015-16, the company had recommended a dividend of Rs 15 per share. The shareholders also were anxious over the competitive environment in light of overcapacity in the prime routes.
“Ghosh said the company sees opportunity in the unchartered smaller cities of the country and assured us,” the shareholder said.
Bhatia, though, is not very happy with his returns from the Rs 4 lakh investment made during the IPO. “It has grown to only Rs 4,20,000 which is much lower than the dividend I earned from other stocks.”
The company scrip closed at Rs 883.40 on Wednesday, around the same price of Rs 868 the company initially listed.
Like any other AGM, there were demands of favours in the form of free tickets and special programmes for frequent flyers.
Ghosh declined the suggestions.
MEETING DOSSIER
- President Aditya Ghosh lauded by shareholders for the company’s performance
- Promoters Rahul Bhatia and Rakesh Gangwal did not participate
- Questions were asked on the airlines fleet planning to the competitive pricing scenario
- Shareholders expressed displeasure over low dividend of Rs 15/share
- Demands of free tickets from shareholders