Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
»
1-min read

IndiGo Shares Fall to Lowest Since March After Co-founder Knocks on SEBI’s Door Alleging Misgovernance

IndiGo co-founder Rakesh Gangwal asked the country's securities regulator to intervene in the matter, a move that suggests that a previously reported row between Gangwal and fellow co-founder Rahul Bhatia was escalating.

Reuters

Updated:July 10, 2019, 11:37 AM IST
facebookTwitterskypewhatsapp
IndiGo Shares Fall to Lowest Since March After Co-founder Knocks on SEBI’s Door Alleging Misgovernance
Image for representation.
Loading...

Bengaluru: Shares of Interglobe Aviation Ltd, which owns India’s largest airline IndiGo, fell as much as 19 per cent on Wednesday after one of its co-founders alleged violation of corporate governance rules at the parent group. Interglobe shares hit their lowest since March and were on course for their worst day since January 2016.

IndiGo co-founder Rakesh Gangwal on Tuesday also asked the country's securities regulator to intervene in the matter, a move that suggests that a previously reported row between Gangwal and fellow co-founder Rahul Bhatia was escalating.

“I have vigorously attempted for almost a year to persuade the company to shore up its governance standards, and all my attempts have been thwarted by the IGE Group,” Gangwal said in Tuesday's letter to the Securities and Exchange Board of India (SEBI), referring to Bhatia's affiliate group.

Gangwal and his affiliates own nearly 37 per cent, while Bhatia controls about 38% in Interglobe, giving both a major say in its strategy and plans.

At the centre of Gangwal's complaint are IGE and Bhatia's significant controlling rights over IndiGo, which Gangwal says allows them to carry out "questionable" transactions between IGE and Interglobe.

The controlling rights should not enable transactions that violate the company's code of conduct and are not in its best interests, Gangwal said in a letter to Interglobe's board in May, the company's filing to the BSE Ltd stock exchange showed on Tuesday.

Gangwal's RG Group was misleading shareholders by "putting out false allegations and incomplete and incorrect facts," Bhatia told the board in January, the filing showed. The allegations represent a "subterfuge" to force a change of the governing structure and controlling rights at the company, Bhatia had said.

SEBI has sought a reply from Interglobe by July 19 on the matter.

Analysts at Mumbai-based ICICI Securities took note of the quarrel between the founders, but maintained their "buy" rating on Interglobe's stock, noting "strong business fundamentals".

Meanwhile, shares in IndiGo's rival SpiceJet climbed as much as 9% on Wednesday. A representative for IndiGo did not immediately reply to a request seeking comment.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Infosys 779.35 7.24
Yes Bank 93.20 -1.06
IndusInd Bank 1,475.10 -2.28
Sun Pharma 422.95 3.74
Indiabulls Hsg 638.95 -4.05
Company Price Change %Gain
Infosys 779.45 7.20
Yes Bank 93.20 -1.01
Larsen 1,440.25 -1.84
Indiabulls Hsg 638.30 -4.16
Sun Pharma 422.40 3.61
Top Gainers
Company Price Change %Gain
Infosys 779.35 7.24
Sun Pharma 422.95 3.74
UPL 647.40 2.75
Tech Mahindra 677.90 1.82
Maruti Suzuki 6,079.70 1.81
Company Price Change %Gain
Infosys 779.45 7.20
Sun Pharma 422.40 3.61
Maruti Suzuki 6,079.75 1.81
TCS 2,145.20 1.77
Kotak Mahindra 1,507.75 1.58
Top Losers
Company Price Change %Gain
Indiabulls Hsg 638.95 -4.05
IndusInd Bank 1,475.10 -2.28
Larsen 1,440.60 -1.79
Bharti Airtel 350.60 -1.54
Adani Ports 409.10 -1.49
Company Price Change %Gain
IndusInd Bank 1,474.40 -2.38
Larsen 1,440.25 -1.84
Bharti Airtel 350.70 -1.47
ITC 270.90 -1.47
ICICI Bank 422.40 -1.09

Live TV

Loading...
Countdown To Elections Results
To Assembly Elections 2018 Results