Shares in InterGlobe Aviation - the parent company of the country's largest airline IndiGo - fell as much as 9 per cent on Thursday, a day after the company's chief executive officer Ronojoy Dutta said the issues between its promoters have nothing to do with its functioning. "As much it is very important that we all remain focused on running high performance airline," Mr Dutta wrote in a letter to the company's employees, asking them to continue their work as usual. The letter from Mr Dutta to InterGlobe Aviation staff came after a spat between the promoters of the country's largest carrier became public on Tuesday.
On the National Stock Exchange (NSE), the IndiGo or InterGlobe Aviation shares opened lower at Rs 1,378.95 and plunged to as much as Rs 1,273.20 apiece on Wednesday. That marked an intraday decline of 8.93 per cent compared to the previous close.
On the Bombay Stock Exchange (BSE) as well, the IndiGo shares plunged 8.93 per cent to an intraday low of Rs 1,272.90 apiece.
The airline's mission, direction and growth strategy remain unchanged, and firmly in place, the CEO said.
A spat between IndiGo co-founders Rakesh Gangwal and Rahul Bhatia became public on Tuesday.
Mr Gangwal accused Mr Bhatia and his firms of indulging in questionable related-party transactions (RPTs), and proposed an extraordinary general meeting with shareholders. Mr Bhatia's InterGlobe Enterprises (IGE) said that all transactions with the company have been executed on an arms' length basis in the ordinary course of business.
The IndiGo shares finished lower for a third session in a row.
The InterGlobe Aviation stock, however, pared most of the day's losses and ended 3.29 per cent lower at Rs 1,352 apiece on the NSE, yet underperforming the Nifty benchmark index which finished 0.73 per cent higher.
In the past two sessions, IndiGo shares had declined 10.99 per cent on the Bombay Stock Exchange.