A prominent airline director, Rakesh Gangwal, has made a significant investment in the company, purchasing over 3.6 million shares worth more than $100 million. Gangwal, who co-founded IndiGo, a leading low-cost carrier in India, acquired the shares on September 30 and October 1, taking advantage of the trading window that allows directors and insiders to buy and sell stock.
Gangwal’s move comes amid pressure from activist investor Elliott Investment Management, which has been pushing for changes in the airline’s leadership and strategy to improve its financial performance. In response, the airline has already announced a board overhaul, with executive chairman Gary Kelly set to step down and six other directors retiring from the 15-member board.
However, Elliott is seeking further changes, including the removal of CEO Bob Jordan, and plans to request a special shareholder meeting to press for these changes. Gangwal has expressed his opposition to further upheaval, stating that it would be “counterproductive” and not in the best interest of shareholders.
By making this significant investment, Gangwal has demonstrated his confidence in the airline’s future and his commitment to its success. His perspective as an experienced airline executive and co-founder of IndiGo brings valuable insights to the company’s board, which will be essential in navigating the challenges ahead.
Leave a Reply