IndiGo, the country's largest airline by market share, has decided to give in to one of the demands made by promoter Rakesh Gangwal and will amend the articles of association to appoint independent woman director, the company said on Friday.

Rakesh Gangwal, who holds 36.7 percent stake in the airline, had written a letter to Securities and Exchange Board of India (Sebi) on July 8 seeking regulatory intervention with regard to his disagreements with Rahul Bhatia on corporate governance norms and related party transactions. Rahul Bhatia's InterGlobe Enterprises had denied the allegations made by Gangwal and had called them baseless.

The airline board, which met today to consider and approve the unaudited financial results for the September quarter, will continue the meeting tomorrow as well as it has to discuss a range of other issues but the most important and urgent will be to appoint an independent woman director, chief executive officer Ronojoy Dutta said in the post-earnings conference call.

The airline has also submitted its response to market regulator Securities and Exchange Board of India (Sebi) with regard to the complaints filed by Gangwal on corporate governance, Dutta said.

Sebi and the ministry of corporate affairs have requested for the company's comments in relation to the complaints filed by Gangwal and the company believes that aforesaid matter does not impact the financial results of the airline, IndiGo had said on Thursday.

The airline will submit its explanation on the matter to ministry of corporate affairs by the end of next week, Dutta added.

The company further clarified that the differences between the two promoters are solely regarding the "agreement" between them and it does not relate to the international strategy for IndiGo.

"We need to get together and decide what to do," Dutta said on being asked by a shareholder about sharing the EY audit report and reveal its references.

As of March 31, the two promoters hold 74.93 percent share, while the rest 25.07 percent is held by the public. Rahul Bhatia and his associates hold the highest stake in the company at 38.26 percent, followed by Rakesh Gangwal and his associates at 36.68 percent.

First Published:Jul 19, 2019 5:51 PM IST