Finally, as was widely expected, Rakesh Gangwal, the co-founder of Indigo makes some important announcements.
- He will gradually sell his shareholding over the next 5 years. Gangwal group currently owns 36.61% of Indigo.
- So as to ease his stake selling and not get restricted due to the access to the non-public information, he has resigned from the board with immediate effect.
Above was widely expected, after the long standing feud between him and the other co founder Rahul Bhatia got resolved recently. Market should be broadly fine with his exit. One overhang can be continuous supply of his holding in the market suppressing the overall prices. It might be more helpful, if some strategic investor with deep pockets buys his holding.
Bhatia had earlier this month been appointed IndiGo’s Managing Director.
With exit of Gangwal, Bhatia’s next steps are keenly awaited –
- Whether he onboards any new strategic investor ? Qatar Airways Group’ Chief, Akbar Al Bakr has for years been showing it’s willingness to invest into Indigo.
- How he responds to the expected increase in the competitive pressures from the Tata Group after Air Indian acquisition ?
I personally believe, we would soon see some strategic investment into Indigo.