As IndiGo's turbulence escalates, analysts worry about the spat's lasting impact on inventory
Mumbai: On Wednesday evening, shares of InterGlobe Aviation Ltd fell as much as 20 percent as the squabbling between its founders worsened. InterGlobe operates IndiGo, the largest airline in India. The inventory is now trading a piece at about 1,377.
One of the founders, Rakesh Gangwal, sent a letter to India's Securities and Exchange Board (Sebi), alleging severe corporate governance lapses, including some associated party operations between the private firm of co-founder Rahul Bhatia and the airline.
Note that one of the main reasons why the airline orders such premium valuations was IndiGo's superior profit metrics and scale. Of course, concerns about delays in governance will also influence multiple valuations.
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