Thursday, April 25

Indian Airline Indigo shares fall over 3% on Founders dispute

NEW DELHI: Shares of InterGlobe Aviation extend losing streak for the second consecutive session and fell over 3 per cent amid a tussle between the co-promoters Rakesh Gangwal and Rahul Bhatia.

InterGlobe Aviation is the parent of India’s leading airline service IndiGo.

On the BSE, the scrip declined 3.07 per cent to close the counter at ₹1,354.85. During the day, the shares slumped 8.93 per cent to touch the low of ₹1,272.90.

On the NSE, the shares opened lower and tumbled 8.93 per cent to a low of ₹1,273.20. The shares finally settled at ₹1,352 falling 3.29 per cent.

In terms of equity volume, 7.12 lakh shares were traded on the BSE, while over 1.21 crore units exchanged hands on the NSE during the day.

Shares of the company on the BSE fell 10.73 per cent on Wednesday.

The company’s co-promoters Rakesh Gangwal and Rahul Bhatia are locked in a bitter battle with the former seeking intervention of markets regulator Sebi to address the problems.

Differences between the promoters of IndiGo came into public on Tuesday with Gangwal alleging serious governance lapses by co-founder Bhatia who had earlier termed his demands as unreasonable.

In a filing to the stock exchanges, InterGlobe Aviation on Tuesday said its board of directors has received a letter from Gangwal and Sebi has also sought a response on the letter.

“Sebi has in the meantime asked the company to give its response to this letter by July 19, 2019 with which the company will comply,” the filing said.

Gangwal and his affiliates have around 37 per cent stake in InterGlobe Aviation, while Bhatia and his affiliates (IGE Group) have about 38 per cent.

Meanwhile, shares of Spicejet rose 0.38 per cent to end at ₹120.05 on the BSE.