Shares of Interglobe Aviation, the promoters of India’s largest airline IndiGo, rose as much as 5 percent at Rs 1,953.55 in trade on Tuesday on the BSE. The company has called an extraordinary general meeting (EGM) on December 30 to repeal a clause in the company’s articles of association (AoA), which gives them the right of first refusal (RoFR) over the acquisition of each other’s shares.

Share Market Live

NSE

Removal of the clause will allow either side to sell or transfer shares to a third entity without giving each other notice.

Also Read: IndiGo parent company calls EGM on December 30

IndiGo notified the stock exchange on Monday that it has received a joint requisition for removing transfer restriction provisions from the AoA from co-founders Rahul Bhatia of InterGlobe Enterprises and Rakesh Gangwal and his family. The two promoters hold a combined 74.44 percent of the airline.

At the EGM, permission will be sought to amend InterGlobe’s AoA “by deleting Articles 1.6 to 1.15 (Transfer of Equity Shares), 1.16 to 1.20 (Acquisition of Shares) and 2A (Other provisions on Equity Shares)," the notification said.

The EGM is scheduled in the midst of a bitter feud between Gangwal and Bhatia. The dispute turned legal and reached Delhi High Court in October. Earlier, both parties had battled against each others' claims at the London Court of International Arbitration (LCIA).

Catch all our live market updates here.

First Published:Dec 7, 2021 10:30 AM IST