Shares of InterGlobe Aviation Ltd, which operates Indigo - India’s largest low-cost carrier - closed more than 1 percent down on Thursday, after its crucial extraordinary general meeting scheduled for today concluded.
At 3:30 pm, shares of Indigo closed 1.40 percent down, or 28.10 points lower at Rs 1,980.05 on the BSE.
The shareholders in the EGM were required to vote on it. The result of the EGM voting that took place via video conferencing would be uploaded within two working days.
Meanwhile, IndiGo CEO Rono Dutta has said while the Omicron variant has softened future bookings, the company is on its way to recovery. He added the company will emerge stronger after the two turbulent years due to the coronavirus pandemic.
In the first week of December, Rahul Bhatia and Rakesh Gangwal - the two promoters of Indigo - summoned an EGM to scrap a clause in the company's articles of association (AoA) that gives them the right of first refusal (RoFR) over the acquisition of each other's share.
This practically means that if the shareholders agree to waive the clause, either party can sell or transfer shares to a third party without notifying the other.
Analyst Mayuresh Joshi, William O'Neil said that for Indigo, the overhang when it comes to this internal feud as far as the promoters are concerned, if it gets resolved, a large part of that overhang probably goes behind the stock.
"The markets, however, look beyond that. They look at the structural story unfolding in front of them at this point in time. Yes, the last quarter or two, with restrictions getting lifted off capacities running at 90-100 odd percent, gave life back to the airline. But with omicron coming back, restrictions coming back again and a lot of these airline companies actually fighting for their slots with competitive intensity coming through, pricing pressures being displayed, crude prices move higher, ATF prices were input costs specifically ATF is almost 45 odd percent and if that increases because of competitive pressure, prices do not increase in that proportion," added Joshi.
First Published: IST