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Indigo owner firm's shares dive 9% on promoter rift reports

Indigo owner firms shares dive 9% on promoter rift reports

New Delhi: Shares of InterGlobe Aviation dropped nearly 9 per cent Thursday amid reports of rift between promoters of IndiGo. The scrip tumbled 8.82 per cent to close at Rs 1,466.60 on the BSE. During the day, it tanked 9.82 per cent to Rs 1,450.50.

On the National Stock Exchange (NSE), shares plummeted 8.40 per cent to close at Rs 1,475 apiece. Following the plunge in the scrip, the company's market valuation dropped by Rs 5,455.89 crore to Rs 56,377.11 crore on the BSE.

In terms of traded volume, 3.70 lakh shares were traded on the BSE and over 70 lakh shares on the NSE during the day. IndiGo Chief Executive Officer Ronojoy Dutta Thursday told employees that the airline's growth strategy remains unchanged and is firmly in place, amid reports of rift between two promoters of the country's largest carrier.

"I want to assure you that the growth strategy of the airline remains unchanged and firmly in place, and the management is fully charged by the board to implement it," Dutta said in a communication to employees.

Without directly mentioning about the rift between promoters, Dutta referred to media reports in this regard in the communication.

"I am sure that you are all aware of the press reports regarding alleged disagreements between our two promoters Rahul Bhatia and Rakesh Gangwal," he said.

IndiGo is yet to issue a formal statement on the rift between the promoters. Meanwhile, the BSE has sought clarification from InterGlobe Aviation with reference to news that Bhatia and Gangwal differ over airline's control and performance.

Later in a clarification to the BSE, InterGlobe Aviation said, "With regard to the aforesaid news, please note that the company is not in a position to comment on such news as it relates to the promoters of the company."

The company has been making appropriate disclosures, in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

On Wednesday IndiGo announced that it will start six new domestic flights to and from Kolkata from July 20. Moreover, the no-frills airline said it will start a third direct flight on Delhi-Kathmandu route from July 4.

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