InterGlobe Aviation shares crashed 19 percent in Wednesday’s trade as one of the promoters Rakesh Gangwal approached Sebi over alleged corporate governance issues at the airline.
It declined 19 percent on NSE to hit a low of Rs 1,264.85. The shares hit their lowest since March and were on course for their worst day since January 2016.
37 percent stake in the airline as of the latest filing is held by Ganwal. Co-promoter Rahul Bhatia, on the other hand, owned 38 percent stake in the airline.
Gangwal alleged that a shareholders’ agreement gave Bhatia unusual controlling rights over the company. He suspected that the rights and a lack of diversity and paucity of independent directors may be at the root of why governance matters have taken a back seat at IndiGo.
Interglobe has risen 34 percent this year, thanks partly to the decline of cash-strapped competitor Jet Airways, after which IndiGo and other airlines raced to take Jet’s coveted slots at airports, Reuters reported.
The scrip fell 17.54 percent to hit a low of Rs 1,291 on BSE.