IndiGo Declines 4% on Co-Founder Rakesh Gangwal Resigning from Board

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IndiGo Declines 4% on Co-Founder Rakesh Gangwal Resigning from Board
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the country’s biggest airline by market share IndiGo (NS: INGL ) plunged 3.96% to Rs 2,031.65 apiece at 9:55 am on Monday, in response to its co-founder Rakesh Gangwal resigning from his position after market hours on Friday.

Gangwal stepped down from his position as the company’s director and informed the company’s board members that he would be reducing his stake in the company over the next 5 years.

Gangwal and his family hold a 36.6% stake in IndiGo, and according to the airline’s valuation as of Friday, the stake held by the Gangwal family was worth Rs 29,847.7 crore.

Ganwal’s announcement came two weeks after the airline’s board of directors, in a meeting on Feb 4 appointed Gangwal’s partner Rahul Bhatia as the company’s managing director.

Gangwal and Bhatia, initially co-founders of IndiGo, have been in a long-running dispute over the past three years. Rahul Bhatia is the first managing director of IndiGo.

On Friday, the domestic airline with a market share of 53.5%, informed of completing its first flight on sustainable aviation fuel or SAF, which is a green fuel made using feedstock and other sources like used cooking oil and animal waste fat, among others.

Using SAF reduces carbon emissions by airline companies.

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