InterGlobe Aviation, the parent company of IndiGo, has decided to expand its Board of Directors up to 10 members and the expanded board will have four independent directors.
The decision comes on the backdrop of the recent feud between co-promoters Rakesh Gangwal and Rahul Bhatia, over issues of corporate governance.
"The Board of Directors of the company, at its meeting held on July 20, 2019, have decided to amend the Articles of Association of the Company for expanding the board up to a maximum of 10, including 4 independent directors. The said amendment of the articles will be subject to approval of the shareholders at the forthcoming annual general meeting of the company," IndiGo said in a regulatory filing late on Sunday evening.
Currently, its board has six members, including the Chairman M. Damodaran, the former Sebi chief. On July 19, the company said its board has decided to seek shareholders' approval for expanding the board to enable the induction of an independent woman.
The other members on the board of InterGlobe Aviation, apart from Bhatia and Gangwal are former World Bank executive Anupam Khanna, Anil Parashar, a chartered accountant and Rohini Bhatia, the wife of Rahul Bhatia.
After the recent allegations of "collapsing" corporate governance in the company by Rakesh Gangwal, the Ministry of Corporate Affairs has sought "information or explanation" from the airline. Market regulator Sebi is also looking in the alleged governance lapses.
Industry sources told IANS that the company has also approached former Pepsico CEO Indra Nooyi to join its board of directors.
On the financial front, IndiGo posted its highest ever quarterly net profit of Rs 1,203 crore for the first quarter of FY 2019-20.
Accordingly, the company's profit grew to Rs 1,203.1 crore from Rs 27.8 crore in the year-ago quarter.
"Strong passenger revenues along with a sharp improvement in cargo performance were key drivers to this improved profitability," Dutta said.
"We are particularly pleased with this quarter because it demonstrated our ability to grow rapidly while simultaneously expanding our margin performance," he said.
As of June 30, IndiGo had a total cash balance of Rs 17,337.1 crore comprising Rs 7,696.8 crore free cash and Rs 9,640.2 crore restricted cash.
It had a fleet of 235 aircraft as of June 30 and operated a peak of 1,437 daily flights during the quarter to 70 destinations, including 17 international cities.