Shares of Indigo down post SEBI report on RPTs

The shares of InterGlobe Aviation Ltd went down by more than four per cent on Tuesday at the time of market closing.

This downward move was a result of an alleged report, believed to be released by Securities and Exchange Board of India (SEBI), stating that it has found several undisclosed Related-Party Transactions (RPTs) in its preliminary enquiry. The report further added that the RPTs have taken place between InterGlobe Enterprises and Indigo (operated by InterGlobe Aviation) that were not disclosed as per the required procedure.

According to reports, some sort of internal tension was going on among the promoters of the company-Rakesh Gangwal and Rahul Bhatia for several months over RPTs, which is an arrangement between two entities, sharing a pre-existing business relationship. Meanwhile, SEBI probe came after the ongoing tension between the two and thus, the reports say that the regulator has forwarded the report to a committee of internal divisional chiefs to decide its further course of action.

Besides, an official statement issued by Sanjay Gupta, Company Secretary & Chief Compliance Officer at InterGlobe Aviation states that the report is factually incorrect and the company has not received any communication from SEBI in this regard.

At the time of market closing on Tuesday, the stock of InterGlobe Aviation Ltd was trading at Rs 1,376.70, down by 4.68 per cent against its previous close of Rs 1,444.30 on BSE.