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The special resolution proposed by Interglobe Aviation co-promoter Rakesh Gangwal was defeated in the company's extraordinary general meeting (EGM) on Wednesday. The resolution has not been passed as only 48.56% of the votes cast were in its favour, while 51.44% were against, according to an exchange filing. The resolution required support from at least 75% shareholders.
The EGM was action packed with Gangwal, who requested the meeting, not showing up. Gangwal proposed the EGM earlier this month seeking for a change in Articles of Association (AoA). The proposal was to remove articles related to transfer and acquisition of the company's shares, including 'Right of First Refusal' and 'Tag Along Right' from AoA.
The resolution primarily failed after co-founder Rahul Bhatia's Interglobe Enterpise's voted against it. The Bhatia family and Inter-Globe Enterprises (IGE) together own 38.23%, while Gangwal, his wife Sobha Gangwal and a trust hold 36.65%.
The feud between IndiGo founders, Rahul Bhatia and Rakesh Gangwal, came to the limelight last year. In July 2019, Gangwal had accused Bhatia, of corporate-governance transgressions at IndiGo, and said "unusual controlling rights" held by Bhatia had allowed him to push through related-party transactions in violation of rules.
Interglobe Aviation reported a consolidated net profit surged 167.86% to Rs 495.97 crore on a 25.45% jump in net sales to Rs 9,931.68 crore in Q3 December 2019 over Q3 December 2018.
Interglobe Aviation (Indigo) is among the fastest growing low cost carriers in the world.
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