Canindia News

Indigo shares plunge 5% over reports that Sebi found undisclosed RTPs

Mumbai, Feb 25 (IANS) Shares of InterGlobe Aviation, the company which runs Indigo, fell nearly 5 per cent on the BSE over reports that market regulator Sebi has found several undisclosed related-party transactions (RPTs) between InterGlobe Enterprises and IndiGo. However, the company denied the report in an regulatory filing.

According to reports that impact the stock price of the company, Sebi found several related-party transactions that were not disclosed to the company’s audit committee and shareholders.

The issue of related-party transactions had become a bone of contention between IndiGo co-founders Rakesh Gangwal and Rahul Bhatia. The feud between the two came to light on June 8 last year after Gangwal wrote a letter to market regulator Sebi raising issues related to RPTs and corporate governance.

While Gangwal and his family hold 37 per cent stake in the company, Bhatia and his family control 38 per cent in the country’s largest private carrier with nearly 50 per cent market share on local routes.

In his letter, Gangwal had alleged that basic governance norms and laws were not being followed by the company apart from questionable RPTs. He said the lapses, if not corrected, will lead to unfortunate outcomes.

Highlighting that Bhatia has unusual controlling rights over IndiGo with the right to appoint three out of six directors besides MD, CEO and President, Gangwal implied that such rights were not being exercised fairly.

InterGlobe Aviation closed 4.68 per cent lower by Rs 67.60 a share to Rs 1,376.70 per share.




IIFL dealer, 5 others barred from securities market for front running

CanIndia New Wire Service

India can become AI laboratory of the world: NITI Aayog CEO

CanIndia New Wire Service

India needs to move beyond exporting raw materials: Goyal

CanIndia New Wire Service

Growth in data tariffs, broadband reach show move towards higher ARPU

CanIndia New Wire Service

Three pvt banks in TN, Kerala hit headlines for wrong reasons

CanIndia New Wire Service

Stimulus, healthy macros expected to lift markets (IANS Equity Outlook)

CanIndia New Wire Service

‘CIRP threshold against personal guarantors should be raised’

CanIndia New Wire Service

Unscathed: Pent-up demand more sustained, predictable now, says Kia India (IANS Special)

CanIndia New Wire Service

Accounts not performing due to delay won’t be labelled NPAs: Centre

CanIndia New Wire Service

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More


Stay up to date with the latest news and exclusive offers directly in your inbox