Interglobe Aviation stock skids 2% as co-founder Rakesh Gangwal steps down

21 Feb 2022 , 11:37 AM

Interglobe Aviation Ltd. (IndiGo Airlines) stock slipped after the airline’s co-founder Rakesh Gangwal decided to step off the Board and disclosed his plans to sell his holdings over about five years.

Currently, the stock shed 1.68% or Rs35.60 to trade at Rs2,081 against its previous closing price of Rs2,116.60 on NSE.  It has touched day’s high and low of Rs2,090 and Rs2,025.20 respectively so far in today’s trade.

Indigo’s co-founder Rakesh Gangwal decided to step off the Board and disclosed his plans to sell his holdings over about five years. The company also amended its articles of association allowing one partner to leave without another exercising the right of first refusal. Shareholders amended the articles one month prior to this development.

Two weeks prior to his resignation, his long-term partner Rahul Bhatia assumed the position of managing director. This is the first time in company’s history that it has a managing director. Ronojoy Dutta occupies the position of CEO of the airline.

Rakesh has been a long-term shareholder in the company for over a period of 15 years and expresses that it is obvious to think about divesting one’s holdings someday.

Gangwal along with his family holds 36.61% market share in India’s biggest airline.