InterGlobe stock plunges 11% on promoters spat
Shares of InterGlobe Aviation plummeted over 11 per cent on Wednesday wiping out Rs 6,423 crore from its market valuation following a spat between co-promoters over governance issues.
New Delhi: Shares of InterGlobe Aviation plummeted over 11 per cent on Wednesday wiping out Rs 6,423 crore from its market valuation following a spat between co-promoters over governance issues.
The scrip tanked 10.73 per cent to close at Rs 1,397.75 on the BSE. During the day, it plunged 17.54 per cent to Rs 1,291. On the NSE, shares fell sharply by 11.12 per cent to close at Rs 1,392.
During the trade, it tanked 19.24 per cent to Rs 1,264.85. Led by the sharp fall in the scrip, the company's market valuation also declined by Rs 6,422.6 crore to Rs 53,765.40 crore on the BSE. On the traded volume front, 10 lakh shares were traded on the BSE and over one crore shares on the NSE during the day.
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 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.