As turbulence at IndiGo escalates, uncertainty drags down the stock

Mumbai: InterGlobe Aviation Ltd’s shares tumbled nearly 18% on BSE on Wednesday morning as the squabble between its founders intensified. InterGlobe runs IndiGo, the country’s largest airline. The stock eventually closed 11% lower at ₹1,398.

One of the co-founders, Rakesh Gangwal, has sent a letter to the Securities and Exchange Board of India (Sebi), alleging serious governance lapses at the company, including certain related-party transactions between co-founder Rahul Bhatia’s private firm and the airline.

Reports of differences between the two promoters, Gangwal and Bhatia, have been doing the rounds for a while. On 16 May, when the dispute became public, IndiGo shares had fallen 9% on BSE to ₹1,467 apiece.