New Delhi -°C
Today in New Delhi, India

Aug 23, 2019-Friday
-°C

Humidity
-

Wind
-

Select city

Metro cities - Delhi, Mumbai, Chennai, Kolkata

Other cities - Noida, Gurgaon, Bengaluru, Hyderabad, Bhopal , Chandigarh , Dehradun, Indore, Jaipur, Lucknow, Patna, Ranchi

Friday, Aug 23, 2019

IndiGo co-founder says won’t sell stake in airlines amid feud with partner

Rakesh Gangwal, who is the one of the co-founders along with Rahul Bhatia, has no desire to sell his 37% stake in InterGlobe Aviation.

business Updated: Jul 16, 2019 18:54 IST
Anurag Kotoky
Anurag Kotoky
Bloomberg
The feud in IndiGo, between shareholders Gangwal and Bhatia, is for the controlling rights held by Bhatia which Gangwal alleges allows his partner to push through related-party transactions in violation of rules.
The feud in IndiGo, between shareholders Gangwal and Bhatia, is for the controlling rights held by Bhatia which Gangwal alleges allows his partner to push through related-party transactions in violation of rules.(HTFile)
         

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.”

First Published: Jul 16, 2019 18:45 IST

tags
more from business