IndiGo Denies Media Reports Of SEBI Enquiry Against Parent Company

Interglobe Aviation Ltd., operator of India's largest airline, IndiGo, has issued a clarification on Friday, categorically denying media reports that claimed the country's market regulator had launched a probe into its parent's disclosure practices.

In a filing submitted to the stock exchanges, the airline confirmed it has received "no communication" from the Securities and Exchange Board of India (SEBI) regarding any such examination.

This comes on the back of a Dec. 11 report by a financial news media organisation, which had claimed that SEBI is examining whether IndiGo's parent company had failed in providing mandatory disclosures and was reviewing the role of its board of directors.

"Information reported in the news article is factually incorrect," the company said in its statement. "We wish to clarify that the Company is not aware of any information that has not been announced to the stock exchanges which could explain the price movement."

The clarification from IndiGo comes at a turbulent time for the airline, which received regulatory action following a wave of flight cancellations it had to issue last week due to rostering woes.

IndiGo had to cancel about 5,000 flights, issue fortunes in refund and even offer Rs 10,000 flight vouchers to affected customers.

All of this was coupled with DGCA reportedly terminating four officials who were in charge of IndiGo's flight operations.

The entire fiasco has put immense pressure on the IndiGo stock, which has fallen over 6% in last five days and over 16% in the last month.