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 InterGlobe Aviation's non-executive, non-independent director and co-founder Rakesh Gangwal on Friday tendered his resignation from the company's board with immediate effect.

The development assumes significance as indicates a truce between the airline's co-founder and promoters -- Rahul Bhatia and Gangwal -- after a dispute over shareholders agreement.

Earlier this month, the airline major appointed Bhatia as the Managing Director to focus on expanding the airline's presence in India and international markets and sought shareholders' approval.

On Friday, Gangwal, in a resignation letter, said he plans to gradually reduce his stake in the company over the next five-plus years which allow him to benefit from some of the upside.

"I have been a long-term shareholder in the Company for more than 15 years and it's only natural to someday think about diversifying one's holdings. Accordingly, my current intention is to slowly reduce my equity stake in the Company over the next 5 plus years. While new investors should benefit from the potential future growth in the Company's share price, a gradual reduction of my stake should also allow me to benefit from some of the upside. Like any plan, future events may impact my current thinking," his resignation letter read, which the company attached with a regulatory filing.

"However, I am concerned about the optics of reducing my holdings even though such transactions would only be undertaken when I do not have any unpublished price sensitive information (UPSI). As you are aware, on an ongoing basis, the company provides us information and some of this is UPSI. Being a co-founder, co-promoter and Director, this issue takes on great significance," the letter read.