When InterGlobe Aviation, the parent company that operates IndiGo, will announce the airline’s April-June quarter result for fiscal year 2019-20 (Q1FY20) on July 19, investors would hope for more clarity, and perhaps a truce between two promoter groups – Rahul Bhatia and Rakesh Gangwal.
The relations between the two promoter camps had gone sour recently over decision making and corporate governance issues. Gangwal has accused Bhatia of indulging in Related Party Transactions (RPT) in favour of InterGlobe Aviation Enterprise (owned by Bhatia).
“Overhang of the battle will remain… As we are not aware about the details of the agreement between the two, risks of government intervention have increased and one of them is likely to take legal course,” says Gagan Dixit, Vice- President, institutional equities, Elara Capital.
