Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,884.50-10.95
Stock Analysis, IPO, Mutual Funds, Bonds & More

Sebi seeks details from IndiGo on promoter complaints

Gangwal listed out certain serious concerns regarding governance matters at IndiGo.

PTI|
Jul 09, 2019, 08.47 PM IST
0Comments
New Delhi: Investigating complaints from a promoter about alleged irregularities at IndiGo, markets regulator Sebi has sought details from the airline's listed parent firm InterGlobe Aviation by July 19.

One of the promoters, Rakesh Gangwal, has sought Sebi's intervention in addressing his grievances, InterGlobe Aviation said in a regulatory filing on Tuesday.

In a statement, Gangwal said his letter lists out certain serious concerns regarding governance matters at IndiGo.

Gangwal, also a co-founder, along with his affiliates has around 37 per cent stake in the company. IndiGo is the country's largest airline.

The company told stock exchanges that its board of directors has received a letter from Gangwal.

Sebi has been probing the matter since reports surfaced about differences between the two key promoters, sources said. Reportedly, there are differences between Gangwal and Rahul Bhatia over certain related-party transactions.

"Sebi has in the mean time asked the company to give its response to this letter by July 19, 2019, with which the company will comply," the filing said.

Shares of InterGlobe Aviation closed marginally lower at Rs 1,565.75 on the BSE.

"We are big believers in the long-term potential of IndiGo and its business and operational model.

"However, we also firmly believe that IndiGo can only realise its true potential and be a world class company if it has both - a world class business and operational model as well as world class governance standards," he said in the statement.
Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service