Promoter vs Promoter: Why IndiGo feud is worrying analysts

The tiff between IndiGo's co-founders has spilled over into the public domain after Rakesh Gangwal complained to the Securities and Exchange Board of India (SEBI) against co-promoter Rahul Bhatia. As the dispute intensified, InterGlobe Aviation Ltd shares tumbled nearly 20% on Wednesday morning. Although they recovered slightly, but analysts feel the worst is yet to come. Analysts aren't particularly worried about any immediate impact on the company's financials but concerns about governance lapses can affect valuation multiples.