Rakesh Gangwal’s ownership was more of sweat equity: InterGlobe Enterprises official

NEW DELHI: InterGlobe Enterprises, the holding company of IndiGoNSE 0.16 % promoter Rahul Bhatia, is said to have defended its control of the airline by saying that the company and Bhatia took all the economic risks while Rakesh Gangwal’s ownership was more of sweat equity.

“Gangwal’s ownership was in the form of sweat equity and the entire economic risk, way above and beyond InterGlobe’s contractual agreement with Gangwal, was borne by InterGlobe,” said a person close to Bhatia who did not want to be identified.

The person said the IGE group had invested Rs 1,100 crore in the business, while the earlier requirement was of Rs 200 crore.

“All the risks we carry, while the economic gains were shared equally,” the person said. “Bhatia or IGE did not ask Gangwal to dilute some stake in the company, which could have been done.”