IndiGo calls EGM on 30 Dec
PremiumThe EGM will seek shareholders’ permission to remove curbs on promoter share transfer and to amend its articles of association
NEW DELHI : InterGlobe Aviation Ltd, which operates India’s largest domestic airline IndiGo, on Monday said it will conduct an extraordinary general meeting (EGM) on 30 December, seeking shareholders’ permission to amend its Articles of Association (AoA) and remove restrictions on promoter share transfer.
The board decided to call the EGM on a joint requisition from its promoters—Rahul Bhatia-controlled IGE Group and Rakesh Gangwal-led RG Group—the airline informed stock exchanges.
At the EGM, permission will be sought to amend InterGlobe’s AoA “by deleting Articles 1.6 to 1.15 (Transfer of Equity Shares), 1.16 to 1.20 (Acquisition of Shares) and 2A (Other provisions on Equity Shares)," the notification said.
“The board recommends this resolution for approval by the members of the company as a special resolution," it added.
At the end of 30 September, Bhatia’s IGE Group held 37.83% stake in the airline, while RGE Group, which comprises of Rakesh Gangwal, Sobha Gangwal, and Chinkerpoo Family Trust, held 36.61%. The two promoter groups together held 74.79% stake in the airline.
In July 2019, Gangwal had written to the Securities and Exchange Board of India (Sebi) seeking intervention in what he called corporate governance issues at IndiGo. Gangwal had pointed to third-party transactions, non-independence of the present chairman, and refusal to hold EGMs. He had also proposed to amend the company’s AoA to end the Bhatia-led group’s right of first refusal to buy Gangwal’s stake in case the latter decided to sell his shares. This proposal was, however, rejected by shareholders in January 2020.
In October 2021, Gangwal moved Delhi High Court to enforce an arbitration order of the London Court of International Arbitration.
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