IndiGo co-founder Rakesh Gangwal steps down from board
He said he intends to gradually reduce his equity stake in the company over the next five years.
- Feb 18, 2022,
- Updated Feb 18, 2022 5:04 PM IST
IndiGo co-founder and co-promoter Rakesh Gangwal said that he is stepping down from the airline’s board. He said he intends to gradually reduce his equity stake in the company over the next five years. Gangwal, however, acknowledged that future events might impact his current thinking, in a letter to board members.
He said reducing holdings would only be undertaken when he does not have any unpublished price sensitive information (UPSI) but as a board member the company continues to provide him with information, some of which is UPSI.
He asked the company to not share any UPSI and as he steps down as the director there will be no reason for IndiGo to share such information, Gangwal said.
Gangwal added that he will, in the future, consider participating as a board member.
Here’s the full text of his letter to the board members, dated February 18.
Dear Board Members,
February 18, 2022
I continue to be a big believer in the long-term prospects of IndiGo and more so now with the industry consolidation underway. Under this backdrop and in the long-term, Indian aviation should prosper, as in various other parts of the world.
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about the optics of reducing my holdings even though such transactions would only be undertaken when I do not have any unpublished price sensitive information (UPS). 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 that no Company information 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 board member.
Rakesh Gangwal
Also read: ‘Ready to go green’, says IndiGo as its first-ever SAF aircraft takes off
Also read: Domestic air traffic falls 43% to 64.08 lakh passengers in Jan: DGCA
IndiGo co-founder and co-promoter Rakesh Gangwal said that he is stepping down from the airline’s board. He said he intends to gradually reduce his equity stake in the company over the next five years. Gangwal, however, acknowledged that future events might impact his current thinking, in a letter to board members.
He said reducing holdings would only be undertaken when he does not have any unpublished price sensitive information (UPSI) but as a board member the company continues to provide him with information, some of which is UPSI.
He asked the company to not share any UPSI and as he steps down as the director there will be no reason for IndiGo to share such information, Gangwal said.
Gangwal added that he will, in the future, consider participating as a board member.
Here’s the full text of his letter to the board members, dated February 18.
Dear Board Members,
February 18, 2022
I continue to be a big believer in the long-term prospects of IndiGo and more so now with the industry consolidation underway. Under this backdrop and in the long-term, Indian aviation should prosper, as in various other parts of the world.
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 (UPS). 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 that no Company information 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 board member.
Rakesh Gangwal
Also read: ‘Ready to go green’, says IndiGo as its first-ever SAF aircraft takes off
Also read: Domestic air traffic falls 43% to 64.08 lakh passengers in Jan: DGCA