IndiGo stocks crash over promoters dispute, ends 10.73% lower
New Delhi: Shares of InterGlobe Aviation Limited nosedived on Wednesday amid the ongoing rift between promoters of IndiGo.
Rakesh Gangwal, one of the co-founders of the airline, has alleged violation of corporate governance rules at Indigo, seeking regulatory intervention from market regulator Sebi.
The airline's scrip plunged 10.73 percent or Rs 168 to Rs 1,397 a piece at close today while on NSE the shared declined 11.13 percent or Rs 174.30 to Rs 1,392.00. Shares of the the airline slumped over 19 percent at BSE in the day.
Gangwal, along with his affiliates, hold 37 percent stake in IndiGo while the other co-promoter Rahul Bhatia has 38 percent equity stake.
Sebi has sought a reply from parent company Interglobe Aviation by July 19.
Meanwhile, Indigo CEO Rono Dutta wrote a letter to the company's employees saying that difference of opinion between the company's promoters has got nothing to do with the airline and its functioning, adding that it get sorted out eventually.
In a letter to Indigo employees, Dutta said, “I am sure you have all seen the media reports about a difference of opinion between our promoters. The issues between them will eventually get sorted out but I want to stress that these issues have nothing to do with the airline and its functioning. Our mission, direction and growth strategy remains unchanged, and firmly in place. As such it is very important that we all remain focused on running a high performance airline.”
“Absolutely nothing has really changed for any of us, I will just go about doing my job to the very best of my abilities, and I know I can count on you to do the same. Thank you for your dedication and efforts towards delivering our promise of on-time, courteous and hassle-free experience,” he added.