SpiceJet stock may rise as IndiGo promoter dispute goes sour: Analysts

The troubles at IndiGo, however, are expected to help SpiceJet, as it remains the only listed stock for investors looking to play the growth of the airline sector, says an analyst

The stock of the country’s largest domestic airline InterGlobe Aviation (IndiGo) fell 11 per cent on Wednesday after one of its founder-promoters, Rakesh Gangwal, wrote a letter to the regulators, citing issues of excessive control and corporate governance. 
 

Gangwal, who owns 36.68 per cent stake in the listed airline, had raised issues on related party transactions between InterGlobe and companies controlled by co-promoter Rahul Bhatia. He had indicated that significant powers with Bhatia, who is the single-largest shareholder with 38.2 per cent share, had led to corporate governance failures within the company. 

While analysts have cut their price-to-earnings multiple for the