Heading for Truce

Finally, there's truce between IndiGo promoters Rakesh Gangwal and Rahul Bhatia. The fight that began early last year was settled with IndiGo adopting a new policy for related party transactions (RPTs), and increasing the board strength from six to 10. In the fourth week of August, Gangwal announced that he's going to support the proposed changes to the Articles of Association (AoA) - to increase the board size to 10 - since the board has closed an open issue as per Gangwal's satisfaction.

His agreement with the board decision is in stark contrast to his previous stance on the board expansion where he had suggested that the board strength be increased to seven so that at any point in time, Bhatia's IGE Group would not have significant control over the board. Gangwal also did not attend IndiGos AGM on August 27. His nominee on the board Anupam Khanna also skipped it, a move that has raised doubts among shareholders on the terms at which the promoters smoked the peace pipe.