InterGlobe Aviation Shares Slip On Reports Of Violation Of SEBI Norms

Shares of InterGlobe Aviation, the parent company of IndiGo Airlines, fell over 5 percent to an intraday low of Rs 1,335 on Tuesday after media reports said that SEBI has found undisclosed related-party transactions in its preliminary investigation.

According to a MoneyControl report citing sources, the market regulator found several related-party transactions (RPTs) between InterGlobe Enterprises and IndiGo that were not disclosed as per required procedure.

The report on these findings have been forwarded to the internal committee for penal action.

SEBI's probe comes after co-promoter and shareholder Rakesh Gangwal filed a complaint, back in July 2019, alleging that the companies affiliated to InterGlobe Enterprises (IGE), which is privately held by co-promoter Rahul Bhatia, had benefitted from transactions with IndiGo Airlines.

IGE owns 37.87 percent in InterGlobe Aviation (listed)-which runs IndiGo Airlines. It also holds interests in hospitality, airline management, travel commerce, advanced pilot training, aircraft maintenance engineering and real estate.

It is not yet clear if the undisclosed RPTs found by SEBI are the same as those alleged by Gangwal.