IndiGo parent InterGlobe Aviation shares fall over 3% on promoters' dispute over governance issues

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

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

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

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.

 IndiGo parent InterGlobe Aviation shares fall over 3% on promoters dispute over governance issues

Representational image. Reuters

Shares of the company on the BSE fell 10.73 percent 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.

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 19 July, 2019 with which the company will comply," the filing said.

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

Meanwhile, shares of Spicejet rose 0.38 percent to end at Rs 120.05 on the BSE.

Updated Date: Jul 11, 2019 18:17:36 IST