IndiGo Shares Fall After Reports Of Differences Between Promoters

InterGlobe Aviation shares fell as much as 9.48 per cent to hit intraday low of Rs 1,456 after reports of differences between its promoters Rahul Bhatia and Rakesh Gangwal surfaced. Rahul Bhatia and Rakesh Gangwal have appointed separate law firms to settle a dispute between the two pertaining to management control and appointment of key executives at the Gurugram-based budget airline operator Indigo, Indian Express newspaper reported citing sources. In order to resolve the differences amicably so that it does not affect airline''s functioning, Mr Gangwal and Mr Bhatia are taking help from law firms J Sagar Associates and Khatian & Co, respectively, as per the media reports.

The exchange has sought clarification from the company on the news development for which the response was awaited.

Meanwhile, the growth strategy of IndiGo remains unchanged and the airline's management has full backing of the company's board of directors to implement it, said Ronojoy Dutta, CEO, InterGlobe Aviation, in an email to his employees on Thursday, news agency Press Trust of India reported.

"I want to assure you that the growth strategy of the airline remains unchanged and firmly in place, and the management is fully charged by the Board to implement it," PTI report said citing Mr Dutta's email.

"I am sure you are all aware of the press reports regarding alleged disagreements between our two promoters Mr Rahul Bhatia and Mr Rakesh Gangwal," he added according to PTI.

The CEO said the company would continue its focus on creating value for all shareholders, customers, employees and the communities it serves.

As of 3:15 pm, InterGlobe Aviation shares fell 9.2 per cent lower at Rs 1,460.75 underperforming the Sensex which was up 0.7 per cent.