Shares of InterGlobe Aviation, the parent company of budget carrier IndiGo, tanked over 8 percent amid reports of an alleged rift between IndiGo's promoters Rahul Bhatia and Rakesh Gangwal. The airline, however, denied the reports, calling it mere speculation.

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The stock lost as much as 8.59 percent to Rs 1,487 on the NSE. At 1:55 PM, the stock was trading 8.27 percent lower at Rs 1,1477.15 per share as compared to a 0.49 percent (54.90 points) rise in Nifty 50 at 11,211.90.

According to news reports, differences have surfaced between Bhatia and Gangwal over managerial control of the firm. The report quoted sources as saying that the two partners have approached different law firms.

The move comes as the airline is looking to expand its international operations. The report said that Bhatia has hired JSA Law while Gangwal hired Khaitan & Co to resolve the dispute.

Apart from the trouble between Bhatia and Gangwal, the employees of IndiGo, the report said, have been complaining about the working environment of the company right after the airline hired expats on to their team.

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First Published:May 16, 2019 1:58 PM IST