The ensuing fight between the promoters of InterGlobe Aviation, which owns IndiGo airlines, led to the shares of InterGlobe Aviation plunging by almost 19 per cent on Wednesday. The shares tumbled following reports that one of the co-founders of IndiGo, Rakesh Gangwal, accusing co-founder Rahul Bhatia of serious governance lapses. Bhatia had earlier termed Gangwal's demands as unreasonable.
IndiGo shares hit a low of Rs 1,264.85, the lowest since March and were on course for their worst day since January 2016, on NSE on Wednesday.
Meanwhile, to avoid alleviate fears, IndiGo CEO Ronjoy Dutta on Wednesday wrote to the employees saying the issues between the promoters have nothing to do with the airlines and its functioning. "The issues between them will eventually get sorted out but I want to stress that these issues have nothing to do with the airline and its functioning," Ronjoy Dutta said.
He said the the airline's mission, direction and growth strategy remains unchanged, and firmly in place. "As much it is very important that we all remain focused on running high performance airline," he said in the letter, asking the employees to continue their work as usual.
READ: IndiGo responds to reports of alleged rift between promoters
"Absolutely nothing has really changed for any of us, I will just go about doing my job to the best of my abilities, and I know I can count on you to do the same. Thank you for your dedication and efforts towards delivering our promise of on-time, courteous and hassle free experience," he said.
Rakesh Gangwal, one of the promoters of IndiGo, on Tuesday alleged serious governance lapses by its co-founder Rahul Bhatia, who had earlier termed his demands as unreasonable. With the issues brewing for nearly a year, Gangwal sought markets regulator Sebi's intervention to address the problems.
Alleging that the company has "started veering off" from the core principles and values of governance, Gangwal said that even a "paan ki dukaan" (betel shop) would have managed matters with more grace.
Flagging concerns about certain questionable Related Party Transactions (RPTs), Gangwal said the shareholders' agreement provides his long-time friend Bhatia unusual controlling rights over IndiGo.
(With PTI inputs)
