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New Delhi, Feb 25 () A preliminary probe by markets regulator Sebi has suggested prima-facie violations of corporate governance and listing disclosure norms in certain related party transactions involving budget carrier IndiGo's parent firm InterGlobe Aviation Ltd, sources said. While the company said it has not received any communication from Sebi in this regard, shares plunged sharply in afternoon trade on Tuesday. 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. The sources said that a preliminary probe has now suggested violation of certain listing disclosure norms as also of fair corporate governance practices at the company. InterGlobe shares closed 4.68 per cent lower at Rs 1,376.70 apiece on the BSE, after hitting an intra-day low of Rs 1,334 in afternoon trade after a sudden plunge following media reports about the Sebi probe."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," the company said in a filing to the BSE. This came after the exchange sought a clarification from the company on the reports. There was no official word on the probe from Sebi, which has been conducting a thorough probe into the IndiGo matter. 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. In the wake of the feud, arbitration proceedings are also going overseas between the two promoters' sides. Last month, InterGlobe Aviation's shareholders rejected a proposal of Rakesh Gangwal to amend the company's Articles of Association (AoA). Generally, an AoA provides the regulations for operating a company. Rakesh Gangwal (RG) Group and related entities together hold 36.64 per cent stake while Bhatia and affiliates -- InterGlobe Enterprises (IGE) Group -- have around 38 per cent shareholding in the company. BJ RAM

Sebi probe suggests prima-facie violations of norms in IndiGo related party transactions; shares plunge

<ul><li>The low-cost airline's profit hits a new record as jet fuel prices fall and competition decreases.</li><li>IndiGo's management said that the company managed to reduce its cost of fuel by 11%, even though the actual fall in aviation turbine fuel was much lesser.</li><li>IndiGo's Chief Executive Officer Ronojoy Dutta dismissed any significant benefit from the disappearance of Jet Airways from Indian skies.</li></ul> InterGlobe Aviation Ltd-owned India's biggest airline by market share, IndiGo, on Friday posted its highest ever quarterly net profit at ₹1,203 crore for the first-quarter of 2019-20. "Strong passenger revenues along with a sharp improvement in cargo performance were key drivers to this improved profitability. We are particularly pleased with this quarter because it demonstrated our ability to grow rapidly while simultaneously expanding our margin performance," the company's CEO, Ronojoy Dutta said. In a conference call with analysts, the management highlighted that its efforts in managing its fleet and routes led to a fall in fuel cost of 11% during the quarter whereas the actual fall in jet fuel was much lesser. "Going forward, obviously, this quarter the aircraft utilisation was a little lower due to some temporary issues. As that improves there will be some tailwinds in terms of fixed costs," Rohit Philip, the chief financial officer of IndiGo said. Sales jumped 42% to ₹9,420 crore and market share has steadily risen since rival Jet Airways went bankrupt and stopped flying. This has helped all airlines charge higher airfares while costs came down, helping their profits. However, Chief Executive Officer Ronojoy Dutta dismissed any significant benefit from the disappearnce of Jet Airways on the company's performance. IndiGo only got 35 slots vacated by Jet in the Mumbai airport and that's a small portion of the total 1400 slots IndiGo has. For fiscal year 2020, year over year capacity increase in available seat per kilometre is expected to be 30%, the company said in a presentation. SEE ALSO: <a href="https://www.businessinsider.in/indigos-share-price-crashed-10-7-to-1397-on-wednesdays-closing/articleshow/70158806.cms" data-type="tilCustomLink" target="_blank">IndiGo’s shares crash to a new low after a promoter alleges the other of governance violations</a>

IndiGo airline's profit hits a new record as jet fuel prices fall and ticket prices spike

<a href="http://www.businessinsider.in/searchresult.cms?query=jet+airways&amp;sortorder=effectivedate">Jet Airways</a>, India's second-biggest airline by passengers, reported an annual profit on Thursday for the first time since 2007 and a year ahead of schedule under its 2014 turnaround plan. 
 
The carrier, part-owned by <a href="http://www.businessinsider.in/searchresult.cms?query=etihad&amp;sortorder=effectivedate">Abu Dhabi's Etihad Airways</a>, said lower fuel costs and higher aircraft use helped it swing to a profit in the year ending on March 31 but warned that growing domestic competition was putting pressure on yields. 
 
For the year, its net profit was a record 12.12 billion rupees ($181 million) compared with a loss of 20.97 billion rupees in the previous year, the company said in a statement. 
 
Jet reported a profit of 4.26 billion rupees for its fourth quarter to the end of March, compared with a loss of 18.03 billion rupees in same quarter a year earlier. 
 
It lowered its debt by 16.8 billion rupees during the year but did not say what the latest debt level was. 
 
The airline would continue to focus on strengthening its balance sheet to sustain growth, <a href="http://www.businessinsider.in/searchresult.cms?query=naresh+goyal&amp;sortorder=effectivedate">Chairman Naresh Goyal</a> said in the statement, although he said competitive and structural challenges remained. 
 
"The induction of capacity and the enhanced competitive scenario is creating a constant pressure on yields," Goyal said. 
 
Jet competes with state-run <a href="http://www.businessinsider.in/searchresult.cms?query=air+india&amp;sortorder=effectivedate">Air India</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=vistara&amp;sortorder=effectivedate">Vistara</a> - a joint venture of Tata Group and Singapore Airlines - in the so-called full-service category in a domestic market dominated by low-cost carriers. 
 
InterGlobe Aviation Ltd's <a href="http://www.businessinsider.in/searchresult.cms?query=indigo&amp;sortorder=effectivedate">IndiGo</a> is India's top carrier with 38.7 percent of the market as of April. 
 <keyword id="6358200" type="CITY" weightage="20" keywordseo="Jet-Airways">Jet Airways</keyword>' market share was 18.9 percent in April, down from 23.1 percent a year ago, according to government data. 
 
(Image: BCCL)

Jet Airways posts first annual profit after 8 years

The spectacular debut of <a href="http://www.businessinsider.in/searchresult.cms?query=indigo">IndiGo</a> , India's biggest airline by market share, on the bourses on Tuesday, not only reflected investor’s confidence in India’s potential as one of the world's fastest growing aviation markets but a possible resurgence of the primary market after a prolonged lull. This was despite a premium valuation at around $4 billion (it is twice as valued compared with the combined valuation of peers Jet Airways and SpiceJet). 
 
For a perspective, InterGlobe Aviation Ltd, which runs the carrier, raised $453.52 million last month through its initial public offering, which was the largest IPO since telecom tower firm Bharti Infratel Ltd raised $750 million in December 2012. 
 
IndiGo’s blockbuster market entry is a sharp contrast to the debut of Coffee Day Enterprises Ltd (that runs India’s largest cafe chain Cafe Coffee Day) as it struggled to sail through and revive hopes that the <a href="http://www.businessinsider.in/searchresult.cms?query=ipo+market">IPO market</a> in India is finally turning around. 
 
Last two years have been a dismal period for the primary market in the country, reflecting the lack of momentum that prevailed across the broader market prior to the Narendra Modi-led Indian government assumed power. 
 
The lacklustre history of the IPOs, launched in the last decade and underperformed, also proved to be a dampener for investors who have already been skeptical about the slow pace of structural reforms that are needed to revive market sentiments. 
 
Complex listing rules also pulled back companies from tapping the primary market to raise funds—till recently the IPO market was governed by archaic rules that have existed for decades. 
 In addition, companies, especially those in the booming technology sector, have been exploring alternative sources of finance. For example, while e-commerce major <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> raised more than $1billion from Private Equity investors over the last one year, its close competitor <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword> raised close to $1billion. Ola, India’s leading taxi-hailing app, which raised roughly $650 million from Private Investors recently, is another example of next-generation technology-driven startups that are tapping the PE source of funding for growth. 
 
However, the prospects of the IPO market seem to be changing. More than a dozen companies have filed draft papers with markets regulator <a href="http://www.sebi.com/">SEBI</a> for public offers since the new government took charge at the Centre in May 2014. Besides, many companies, which scrapped their IPO plans earlier due to bad market conditions, have been keen to make another attempt to enter the capital markets. 
 
These translated in to a modest uptick in IPOs during 2015, after two years when the primary markets were almost dead. Though the money raised through IPOs this year is small compared with $8 billion raised in 2010, the last time Indian primary markets really took off. But, it is believed to be a trigger for more sizable IPOs going ahead. 
 
The renewed confidence of investors, especially FIIs, after the <a href="http://www.businessinsider.in/searchresult.cms?query=Modi">Modi</a> government took over contributed to the revival of the secondary market—where investors trade previously issued securities—which peaked over a year since BJP came to power and thus provided fodder for an uptick of the primary market as well. 
 
Of course, the markets are seeing a correction—bench market indices BSE Sensex and Nifty lost more than 10% over two months—driven by the slower growth numbers reported by China. 
 
However, India’s long-term story remains intact as it can turn China’s pain into its gain as an alternative investment destination for large FIIs. 
India continues to be among the most favoured by emerging market investors given the country's strengthening macro fundamentals. Though concerns over the economy as well as cultural tolerance have risen recently, they haven't hampered investor sentiment significantly. 
 
Also, as indicated by the government’s move on Tuesday to further relax FDI norms in over 15 sectors, including defence, realty and broadcasting, the policy initiative to bring in structural reforms is still well on track. Therefore, the chances of a continued revival of the primary market are bright. 
 
The IPO activity is expected to gain more momentum driven by the enhanced need for the companies to go beyond the Private Equity route to raise capital for growth and expansion. Many companies and investors are also turning to the IPO route as a preferred option for generating liquidity. 
 
The renewed interest in IPOs is also driven by private-equity backed firms which are capitalising on the positive market sentiment to provide an exit for their investors. 
 
According to Dealogic, Indian companies have raised around $1.03 billion via IPOs so far this year, well above the $282 million for all of last year and $295 million in 2013. More companies in sectors such as banking and financial services, technology, logistics and pharma are expected to tap primary markets in the near future. 
 
While size of the IPOs raised in India remain relatively small compared with those seen in the US or other Asian financial capitals such as Hong Kong and Tokyo, the uptick in the primary market proves that activity seen by the secondary markets after May 2014 is not just an aberration and strengthens India’s status as a preferred investment destination amid shades of gloom elsewhere, including China. 
 
(Image: Thinkstock)

You Searched For "InterGlobe Aviation Ltd" and got 4 results

Sebi probe suggests prima-facie violations of norms in IndiGo related party transactions; shares plunge

PTI

IndiGo airline's profit hits a new record as jet fuel prices fall and ticket prices spike

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Jet Airways posts first annual profit after 8 years

Reuters

The primary Indian market is gaining momentum and it is not an aberration. Here’s why

Preetam Kaushik

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