Mumbai: Shares of InterGlobe Aviation slumped 10.7 per cent to Rs 1,397.75 on Wednesday after the company’s co-founder Rakesh Gangwal raised corporate governance issues at the airline with the Securities and Exchange Board of India. This was the biggest fall in the stock since August 2016 and the third largest since listing in November 2015. The stock had fallen as much as 17.5 per cent to a low of Rs 1,291 earlier in the day. Shares of rival airline SpiceJet ended up 2 per cent at Rs 119.60 after gaining as much as 9.4 per cent intraday. “If today any corporate governance issue emerges, then market always punishes that particular stock and IndiGo has suffered due to that,” said Amnish Aggarwal, head of research at Prabhudas Lilladher. “However, if there is a rift in management and if it leads to investigation by the Sebi, then it can start to have a bearing on the overall sentiment on the stock.”
Gangwal held 37 per cent stake in the airline as of the latest filing. Co-promoter Rahul Bhatia, on the other hand, owned 38 per cent stake in the airline.
