Shares of Interglobe Aviation, the company operating Indigo airline, plunged a massive 18% in the morning trade to hit a low of Rs. 1,291 per share on the BSE on Wednesday after the company's promoters Rakesh Gangwal and Rahul Bhatia made allegations against each other, which led the market regulator SEBI to intervene.
Gangwal with 36.68% ownership in the company has asked for consent to hold an EGM meeting as he alleges engagement of the company in disagreeable related-party transactions (RPTs) and non-compliance with corporate governance protocols.
On the other hand, another promoter who is involved in the conflict, Rahul Bhatia denied the charge citing that the Companies Act provides the authority to the board of the company which can decide on its functioning.
Gangwal in a letter to SEBI's chairman Ajay Tyagi with a copy to the Prime Minister has written that other than objectionable RPTs, fundamental governance standards and laws were not complied with and unless correctives measure were taken this would result in "unfortunate outcomes".
At 10:18 am, the stock of Interglobe Aviation, the parent company of Indigo was trading at Rs. 1368.45, down Rs. 197.30 or 12.60%.