Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Stock Report

| More

IndiGo clarifies on press reports

Posted On: 2019-05-19 11:43:11

There have been various press reports about potential disagreements between the two promoters of IndiGo, Rahul Bhatia and Rakesh Gangwal. These reports have in turn fueled further speculation as to what those areas of disagreements could be including future direction of the company, management changes, control issues and the like. I would like to forcefully address these baseless speculations as they are not in the best interests of our shareholders, our employees and the travelling public.

The hiring of law firms: It is true that the IGE group is represented by the law firm of JSA and the RG Group is represented by the law firm of Khaitan & Company. These prestigious law firms have been on retainer by the founders since at least the time of the IPO of the Company in 2015 and they continue to represent the promoters on various ongoing matters as it relates to their shareholding in IndiGo. Thus, the 4 year old ongoing retainer history of the law firms should not be presented or seen as a new revelation.

Management changes: It is true that IndiGo has gone through a number of changes in a continuum that stretches from Aditya Ghosh, to Greg Taylor to a team of highly skilled expatriates to me. I can state unequivocally that every one of these senior leaders contributed a great deal to IndiGo and we are truly grateful for their contributions. But all great companies go through periods of transition as they evolve from one phase of their growth to another and a little bit of turbulence during these transition phases is neither unusual nor unwelcome. Most importantly, the promoters and the Board have worked as a team in making these management changes. We would urge the press not to confuse every management change as a sign of dissonance at the top.

Control issues: There has been some speculation that perhaps some disagreement centers round the RG Group seeking to acquire more control of the management and the Board. I am authorized by Mr. Rakesh Gangwal to make the following statement on his behalf - "I am categorically and clearly stating that there is no interest or desire whatsoever on the part of the RG Group to take control of the company. Also, to put to rest the messaging on the fact that the RG Group is attempting to renegotiate the Shareholders Agreement, I am placing on record that the RG Group stands by the current SHA which, in any case, expires this October". I don't think Mr. Gangwal could have been more clear and explicit on his intentions and I thank him for authorizing me to make this statement on his behalf.

Issues of rapid growth and international expansion: Let's be clear on one fact - IndiGo is an exceptionally successful company and one of the pillars that made it so successful is that it dared to have a bold vision regarding the future of aviation in India. Some in the press are now suggesting that perhaps IndiGo is having second thoughts on the very strategy that made it so spectacularly successful. I am now speaking to our employees who have been such a critical part of IndiGo's success when I say, please do not believe these baseless speculations, we remain committed to our path of a rapid buildup of airline connectivity within India and to international destinations. Reiterating this, the full Board wants to clearly state that "IndiGo's strategy in terms of growth and cost leadership remain unchanged, we remain committed to being an institution which benchmarks itself against the best-in-class organizations across the world".

The full Board also wants me to place on record that they wish to ensure the highest level of Corporate Governance to the Board and to the management functions at IndiGo. Towards this, more recently, the IGE Group nominated Mr. Damodaran, who has a wealth of Board experience on governance issues, as the new Chairman of the Board. He is fully supported by the members of the Board and the management team.

We all know, that in any strong and well-managed company there will always be differences. And, yes, there may be differences currently on certain matters but the Company has a great track record of resolving issues and coming out ahead. If the current differences were to not get resolved, you shall certainly hear about it; however, it serves no purpose speculating about it.

I deeply resent and wish to dispel all attempts to portray us as a fractured team at IndiGo. The truth is that we are all very much united in vision, purpose and direction as we move forward to build a world class airline.

Shares of InterGlobe Aviation Ltd was last trading in BSE at Rs.1474 as compared to the previous close of Rs. 1466.6. The total number of shares traded during the day was 398418 in over 13724 trades.

The stock hit an intraday high of Rs. 1497.15 and intraday low of 1415.6. The net turnover during the day was Rs. 579723500.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Pricol Ltd to hive off overseas subsidiaries

Glenmark Pharmaceuticals receives tentative ANDA approval for Clindamycin Phosphate Foam, 1%

PNB board approves raising Rs. 1500 crore through Basel III compliant Tier II bonds

BEML donates for cyclone 'Fani' relief work, Odisha

TAAL Enterprises Ltd calls for board meeting on June 24, 2019

Newgen Makes its OmniFlow iBPS Platform More Intelligent with Process Insights

HDFC Limited to acquire Apollo Hospitals Group's shares in Apollo Munich and to merge with HDFC ERGO

TCS Retains Position as America's Most Community-Minded Information Technology Company

Bombay Cycle & Motor Agency Ltd Board to consider Bonus Issue on June 22, 2019

IndusInd Bank Ltd announces record date for issue of shares to BFIL shareholders

Brickwork reaffirms rating of Parsvnath Rail Land Project Pvt Ltd

Adani Green Energy Ltd arm receives LOAs for 600 MW hybrid projects

TCS Named 2018 Top Supplier of the year by QIAGEN

International Paper APPM Ltd announces annual outage from July 29, 2019 to Aug 28, 2019

Rajesh Exports bags new export order worth Rs. 942 crores from Germany, Europe

Indostar Capital Finance Limited and ICICI Bank Limited partner to finance Commercial Vehicles

BHEL successfully commissions Chhukha Unit-1 in Bhutan

Asian Oilfield Services receives orders of $37 mn

GAIL India Ltd fixes July 10, 2019 as record date for bonus issue

Blue Star Ltd receives single largest order from Mumbai Metro

Jubilant FoodWorks Ltd announces change in directorate

L&T Construction awarded contract for water supply and distribution in Sri Lanka

Polyplex Corporation Ltd's subsidiary to set up 60000 TPA BOPP film line project

JV Partners announce Final Investment Decision for initial two LNG train Project Development

Mahindra announces price increase for personal range of vehicles from July 1, 2019

Lawreshwar Polymers Ltd proposes name change

Thomas Cook India releases its Summer Report 2019

Asian Granito India Ltd inaugurates its largest - 25,000 sq feet tiles and Sanitaryware display showroom in Himmatnagar

ONGC Videsh Ltd, JV partners announce Final Investment Decision for initial two LNG train Project Development

Inspirisys Solutions Ltd to allot 56,25,000 shares to CAC Holdings Corporation at Rs. 54.30

HCL Technologies selected by Cricket Australia as Digital Technology Partner

Cognizant to acquire Zenith Technologies, a Leader in Life Sciences Manufacturing Technology Services

IndiGo awarded 'Best Low-Cost Airline in Central Asia/India' by Skytrax tenth year in a row

Chambal Fertilisers and Chemicals Limited updates on credit rating of Commercial Paper

NLC India Ltd commissions 100 MW solar PV power plant

RMG Alloy Steel Limited board approves issue of securities

Dabur India Ltd board to consider Q1 results on July 19, 2019

Sportking India Ltd updates on credit rating

Sundaram Multi Pap Ltd receives BB+ rating from Brickwork

Canara Bank to initiate process to sell stake in Can Fin Homes Ltd

Coromandel Engineering Company Limited to issue CNPRPS on private placement basis

Wintac Ltd board to re-initiate delisting process proposed by Veego Pharma LLC

Adlabs Entertainment Ltd announces resignation of Ms. Meghna Ghai Puri

TCS Named a Leader in Next-Gen Testing Services by NelsonHall

Trent Ltd to raise Rs. 950 crores from Tata Sons Pvt Ltd

Canara Bank to raise Rs. 6000 crores through equity issue

Infosys recognized as winner for 2019 Microsoft Global Alliance SI Partner of the Year

HCL Technologies celebrates 20 years of Innovation in Australia and New Zealand

WABAG secures One City One Operator contracts in Uttar Pradesh worth INR 1,477 Crore

Hexaware Ranks No. 1 Among the Top Service Providers in Overall Customer Satisfaction in Whitelane's IT Sourcing Study







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019