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Indigo announces resignation of Rakesh Gangwal

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Capital Market
Last Updated : Feb 21 2022 | 4:04 PM IST

Rakesh Gangwal, non executive, non independent director has tendered his resignation from the board of directors of the company vide his letter dated 18 February 2022, with immediate effect.

As on 31 December 2021, Rakesh Gangwal, one of the promoters of Indigo, held 14.65% stake in the airliner.

Rakesh Gangwal, in his letter of resignation, stated, "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."

"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about the optics of reducing my holdings even though such transactions would only be undertaken when I do not have any unpublished price sensitive information (UPSI). 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 no company information be shared 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 borad memeber," Mr Gangwal added.

The low-cost air carrier reported a consolidated net profit of Rs 129.79 crore in Q3 December 2021, compared with net loss of Rs 620.14 crore in Q3 December 2020. Revenue from operations was at Rs 9,294.8 crore for the quarter, an increase of 89.3% against a 50.3% increase in capacity compared to same period last year.

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IndiGo is amongst the fastest growing low-cost carriers in the world. As of 31 December 2021, fleet comprised 283 aircraft including 56 A320 CEOs, 140 A320 NEOs, 52 A321 NEOs and 35 ATRs; a net increase of 4 aircraft during the quarter.

Shares of Interglobe Aviation (Indigo) fell 1.90% to close at Rs 2,080 on BSE.

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First Published: Feb 21 2022 | 10:45 AM IST

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