InterGlobe Aviation falls 7% after IndiGo shows interest in Air India

InterGlobe Aviation, which operates IndiGo airline, was down nearly 5% to Rs 1,179 on BSE in intra-day trade, extending its Thursday’s fall, after the low-cost carrier has expressed unsolicited interest in buying a stake in national carrier Air India. The stock has fallen 7.4% from its 52-week high of Rs 1,273 touched yesterday, June 29, 2017.

The company has submitted a letter to the Government of India, with an unsolicited expression of interest (EOI) in the divestment procedure of Air India. "As the Indian Government embarks on the journey of privatising Air India and given IndioGo track record of having created a consistently profitable airline with a strong balance sheet. Kindly treat this letter as our expression of interest in acquiring the International airline operations of Air India and Air India Express. Alternatively, we are equally interested in acquiring all of the airline operation of Air India and Air India Express," InterGlobe Aviation said in a letter. The Cabinet on Wednesday gave in-principle approval for the divestment of the national carrier. At 9:38 am; the stock was trading 4.3% lower at Rs 1,181 on BSE as compared to 0.46% decline in the S&P BSE Sensex. A combined 454,771 shares changed hands on the counter on BSE and NSE so far. Financial Astrology Tips