Shareholders of IndiGo have rejected a special resolution, proposed by co-founder Rakesh Gangwal, to amend the airline's Articles of Association.
In a statement to the exchanges on January 29, IndiGo said that 48.5584 percent of the shareholders voted for the resolution, and 51.4416 percent against it.
"The Special Resolution... has not been passed as the votes cast in favour of the resolution are less than three limes the number of votes cast against the resolution," said the statement.
The results came after the EGM, which was called by the RG Group, comprising of Gangwal, and his wife Shobha Gangwal. The RG Group holds 36.64 percent stake in IndiGo, the country's largest airline.
Gangwal had called for the EGM to discuss deleting various Articles pertaining to transfer and acquisiton of the company's shares, including 'Right of First Refusal' and ' Tag Along Right', in the company's Articles of Association (AoA).
The call had led to rumours that Gangwal perhaps wants to exit the company, after a running feud with his co-founder Rahul Bhatia, but doesn't want his partner to pick up the stake.
A PTI report adds that one of the Articles that is sought to be removed pertain to each group agreeing not to acquire additional shares or voting rights of the company that might trigger an open offer requirement under Sebi's takeover regulations.
Bhatia's InterGlobe Enterprises has about 38 percent stake in IndiGo.
The feud between the promoters had come to fore in July 2019, after Gangwal wrote to market regulator SEBI alleging corporate governance issues at IndiGo.
While that matter seemed to have been resolved, post a board approval, Bhatia soon filed for arbitration at London Court of International Arbitration.
Now, after the shareholders have rejected his move to amend the Articles of Association, it remains to be seen what would be Gangwal's next step.