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New Delhi: The ongoing operational crisis in the country's largest airline IndiGo has directly affected the stock of its parent company Interglobe Aviation. In the last eight days, the stock has declined around 17 percent. With the frequent cancellation of flights and the implementation of new FDTL rules, the concern of travellers as well as investors has increased. The biggest impact of this decline has been on those mutual fund houses, which have invested heavily in it.
IndiGo cancelled more than 1000 flights in a single day, which is the biggest record in India's aviation history for the highest number of cancellations in a single day. Due to changes in FDTL rules and technical problems, cancellations have increased rapidly. This created a negative atmosphere in the market and investors started selling shares sharply. This was the reason why the stock has fallen from Rs 5917 to Rs 4913.
The mutual fund houses have a large stake in Interglobe Aviation. As of October, the houses had a total of more than 6 million shares. The stock fall has directly affected the portfolio of these investors. ICICI Prudential Mutual Fund had the most shares. It had 1.19 crore shares. Besides this, SBI Mutual Fund had 88 lakh shares and HDFC Mutual Fund had 78 lakh shares.
Other big fund houses are also affected
Kotak Mutual Fund had more than 52 lakh shares. At the same time, UTI Mutual Fund had 39 lakh shares. Big fund houses like Aditya Birla SL and Bandhan MF have also invested in millions of shares.
New MF company GeoBlackRock is also an investor
The new fund house GeoBlackRock also bought more than 40,000 shares. However, their share is quite low, so the impact of the decline on them has been limited.
The stock of Interglobe Aviation Ltd was trading at Rs 4918 apiece at the time of writing thai article. The company's market cap stood at Rs 1,90,141 crore. The stock's high has been at Rs 6232 and a low of Rs 3945. Its stock PE is 37.6, while the book value has been recorded at Rs 220.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
