InterGlobe Aviation share price fell in early trade today after market regulator SEBI found prima-facie violations of corporate governance and listing disclosure norms in certain related party transactions involving the firm. Share price of InterGlobe Aviation lost 1.74% to Rs 1,352 compared to the previous close of Rs 1376.70 on BSE. InterGlobe Aviation share has lost 6.11% in three sessions.
The large cap stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
InterGlobe Aviation shares have gained 22.61% in last one year and risen 3.74% since the beginning of this year.
On Tuesday, InterGlobe shares closed 4.68 per cent lower at Rs 1,376.70 on BSE, after hitting an intra-day low of Rs 1,334 in afternoon trade following media reports about the Sebi probe.
Later, the company in a clarification to bourses said, "We would like to state that the news item published in some media reports is factually incorrect and the company has not received any communication from Sebi in this regard."
IndiGo has been facing a probe by the Securities and Exchange Board of India (Sebi) ever since a public spat came to light between two founders of the airline, including over certain related party transactions involving one of the warring promoters. Sources said a preliminary probe has now suggested violation of certain listing disclosure norms as also of fair corporate governance practices at the company.
All agreements between the two warring founders as well as those between the company and its various investors and associates, including related parties, are being looked into by the watchdog.
The probe has suggested that some of the related party transactions could have been significant and required detailed disclosures and greater vetting by board committees comprising of independent directors, the sources said. The differences between co-founders and co-promoters -Rakesh Gangwal and Rahul Bhatia - came to the fore in July 2019 after Gangwal sought market regulator Sebi''s intervention to address alleged corporate governance lapses at the company.
By Aseem Thapliyal