Who Are IndiGo Promoters Rahul Bhatia And Rakesh Gangwal?
Bhatia and Gangwal co-founded IndiGo in 2005.
The rift between promoters of India’s largest airline in terms of market share reached the Securities and Exchange Board of India on Tuesday. Rakesh Gangwal, a U.S. citizen and the non-executive director at IndiGo, has accused his co-promoter Rahul Bhatia of “questionable related-party transactions”, violations of governance regulations and the company’s code of conduct.
Bhatia and Gangwal jointly founded the airline in 2005. While Bhatia owns 38 percent stake in IndiGo, Gangwal holds 37 percent. Gangwal, in his letter to the Securities and Exchange Board of India, accused Bhatia of having “unusual controlling rights” over IndiGo. Bhatia called it a red-herring.
Bhatia, the current managing director, started InterGlobe Enterprises Pvt. Ltd. in 1989 with its flagship business of air transport management, according to the company’s website
Gangwal, who has over three-decades of experience in the aviation industry, started his career with United Airlines in 1984 and left as its senior vice president to join Air France. In 1996, he joined U.S Airways Group before taking a break in 2001 to engage in private equity and consulting-related activities. He then went on to partner with Bhatia to launch IndiGo in 2005.
Bhatia, apart from owning the largest stake in the airline, ventured into hospitality business with the Ibis chain of hotels. It also has a presence in industries like airline management, travel commerce, advanced pilot training, aircraft maintenance engineering and real estate.
In May, the rift between the two became evident when it was reported that they were trying to sort out disagreements about the carrier’s future strategy and clauses in the company’s shareholder agreement.
The current shareholder agreement expires in October and Gangwal clarified that he had no desire whatsoever take control of the company. The airlines’ CEO Ronojoy Dutta had even gone on to say that the company has a great track-record of resolving such matters and coming out ahead.