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Companies

IndiGo-owner shares surge amid signs of truce between warring founders

Stock jumps most in two months on report two partners reach pact

IndiGo, which held about 47% of the country's aviation market, has been facing troubles with the grounding of its Airbus A320neo aircraft fitted with P&W engines.   © Reuters

MUMBAI (NewsRise) -- Shares of InterGlobe Aviation, which owns India's largest carrier IndiGo, surged the most in two months on Wednesday after its two warring founders reportedly called a truce following months of dispute over alleged lapses of corporate governance norms.

The feud between the co-founders -- Rakesh Gangwal and Rahul Bhatia -- escalated ahead of a crucial renewal of a shareholder agreement due in October and raised concerns among investors it would affect IndiGo's expansion plans that envisaged adding hundreds of aircraft the carrier has ordered. The pact gave Bhatia and his holding company InterGlobe Enterprises significant controlling rights over the airline, including the appointment of top management and directors on the company's board.

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