IndiGo under SEBI radar for THIS reason; check share price update

InterGlobe Aviation, the parent company of IndiGo, has come under regulatory attention again. According to a Zee Business report, SEBI is examining whether the airline failed to disclose important regulatory notices issued by the Directorate General of Civil Aviation (DGCA).

The report said that DGCA had issued a show-cause notice to IndiGo on August 11. The notice was related to the use of “non-approved full-flight simulators”. The market regulator believes this information should have been disclosed to the exchanges under the Listing Obligations and Disclosure Requirements (LODR) rules. However, the airline did not inform the stock exchanges about this development.

The issue does not end here. Another DGCA notice was issued on December 6. The report said that this notice, too, was not shared with the exchanges. SEBI may now look into possible violations of LODR norms, which mandate timely disclosure of all material regulatory actions.

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IndiGo under crises

IndiGo, India’s largest airline, recently faced a massive operational meltdown, triggering hundreds of flight cancellations and leaving thousands of passengers stranded nationwide. The crisis, which unfolded last week, was primarily rooted in the airline’s struggle to align its existing pilot rosters with the newly tightened Flight Duty Time Limitations (FDTL) mandated by the DGCA for enhanced safety.

The inability to efficiently re-roster crew exposed systemic operational weaknesses. Major hubs witnessed chaotic scenes as passengers, frustrated by repeated delays and cancellations, lashed out. In one viral incident, a passenger was captured assaulting a pilot, underscoring the extreme stress at airports.

The fallout was swift: the DGCA intervened, ordering the airline to drastically curtail its daily flight schedule by at least 10% until operations stabilised. While IndiGo's CEO publicly apologised and promised urgent network restoration, the episode has severely dented the airline's reputation and highlighted the urgent need for better operational planning and enhanced consumer protection within the sector.

Share price

IndiGo’s share price fell on Wednesday. At around 10:47 AM, the stock traded at Rs 4,925.50, down Rs 42 or 0.85 per cent.

The stock opened at Rs 4,999.50. The day’s high was also Rs 4,999.50. The stock touched a low of Rs 4,854.00 during the session.

IndiGo’s market capitalisation stood at Rs 1.90 lakh crore. The stock 52-week range is Rs 6,232.50 and Rs 3,945.00.