Stocks

InterGlobe Aviation shares extend losing streak due to promoters’ dispute

PTI New Delhi | Updated on July 11, 2019 Published on July 11, 2019

Differences between the company's promoters came into public on Tuesday

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.

On the BSE, the scrip declined 3.07 per cent to close the counter at Rs 1,354.85. During the day, the shares slumped 8.93 per cent to touch the low of Rs 1,272.90. On the NSE, the shares opened lower and tumbled 8.93 per cent to a low of Rs 1,273.20. The shares finally settled at Rs 1,352 falling 3.29 per cent.

Read more: IndiGo co-founders feud over governance lapses

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.

InterGlobe Aviation is the parent of IndiGo.

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.

Also read: InterGlobe Aviation counters Rakesh Gangwal’s claim

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 Rs 120.05 on the BSE.

Published on July 11, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.