IndiGo tanks 5% as promoter feud escalates

NEW DELHI: Shares of InterGlobe Aviation Enterprises extended losses for the third straight session on Thursday amid reports that the issue between two promoters may drag the airline to NCLT. Legal experts are divided as to whether SEBI or NCLT is the right jurisdiction over issues such as articles of association and related-party aspects of the company.

So far, SEBI has asked the company to file its reply based on the complaint filed by Rahul Gangwal pertaining to issues governing to articles of association and related party aspects of the company.

At 11 pm, the scrip was down 5.49 per cent at Rs 1321 on BSE.

Gangwal, who spoke to ET on Tuesday night, anticipated the damage his complaint would do to the stock.

“The tradeoff is, in the short term, somebody like me will take personal attacks and some financial pain,” he said. “And on the other side, in my mind, if these things are not corrected today, down the road we could have a situation like what happened with some other airlines and other companies in India. In the long term, IndiGo will emerge much stronger with good governance.”

Gangwal said that the nation can’t ill afford IndiGo faltering. IndiGo is now very much intertwined with the economic well-being of the country,” he told ET. “Look at the nation — how many companies have got into trouble because of lax adherence to corporate governance and weak board oversight?"