Parent InterGlobe Aviation’s shares bear the brunt, drop more than 17% intraday

MUMBAI: Shares of InterGlobe Aviation Ltd, the parent of the country’s largest airline, IndiGo, slumped more than 17% on Wednesday amid a tussle between its co-founders on corporate governance. The stock touched a low of ₹1,291 during the day before closing at ₹1,397.75, down 168 points, or 10.73%, on BSE.

In the last one year, shares of InterGlobe rose 28.19% while rival SpiceJet was up 7.84%. In 2019, so far, shares of SpiceJet outperformed (up 34%) InterGlobe (up 20%). Shares of IndiGo gained 82.7% from its issue price of ₹765 a share listed on 10 November 2015.

The dispute may have an overhang on the stock, said Gagan Dixit, aviation analyst, Elara Capital. However, the stock will not be re-rated until there is any major or further escalation of the dispute, he said. “Operationally the stock is fine with fair valuations compared to its peer,” Dixit said.