On Thursday, shares of InterGlobe Aviation, Indigo dropped 8.8 percent to close at Rs 1,466.60 on the BSE, amid reports of the fissure between the airline’s promoters.
The biggest one-day decline in the stock in a year since May 3, 2018; the fall has seen the market capitalization of Indigo eroding by Rs 5,400 crores.
“We will continue our focus on creating value for all our shareholders, our customers, our employees and the communities we serve,” said airline’s Chief Executive Rono Dutta. Earlier in the day, he added, the growth strategy of the airline remains “unchanged and firmly in place and the management is fully charged by the board to implement.”
According to the market experts, it is not expected to go the Jet and Kingfisher way as the controls and processes are in place. But I see limited upside in the stock until the issue is resolved.