Shares of InterGlobe Aviation Ltd. (IGAL), the company that owns and operates IndiGo airline, plunged for the third consecutive day with both sides — RG Group and IGE Group — adopting a hard-line stance. During intraday trade, the stock plunged nearly 9% to close at ₹1,354.85, down 3.07%, on the BSE. On a single day, the firm’s market cap fell ₹1,650 crore to ₹52,115 crore.
IndiGo co-founder Rakesh Gangwal, who filed a complaint with the Securities and Exchange Board of India to probe the alleged violation of corporate governance norms at IGAL and to investigate certain Related Party Transactions with the InterGlobe Enterprise Group, has reportedly committed to raise his voice for improving functioning of IndiGo.
On the other hand, Rahul Bhatia, the other co-founder, in a statement issued by his company, categorically denied any wrong doing and said the RPTs were on a decline and currently low at ₹150 crore. He said the RPTs had, in fact, benefitted IGAL. According to him, Mr. Gangwal’s main objective was to annul the Article of Association of the company that provided certain rights to the IGE Group.
IGAL has been asked by SEBI to reply to Mr. Gangwal’s charges by July 19, 2019.