The market reaction towards InterGlobe Aviation’s boardroom tussle remained sharp as the share price of the company that controls India’s largest budget carrier IndiGo fell by as much as 2% in early trading. Opening at Rs 1,451, down from its last closing price of Rs 1,462 InterGlobe Aviation shed gains made on the back of strong Q3 results, after co-founder Rakesh Gangwal’s bid to amend the Articles of Association (AoA) was rejected by shareholders led by Rahul Bhatia.

Gangwal wanted to amend the AoA to free the founders from tag-along rights and right of first refusal (RoFR). If the amendments would have passed it would have been made easier for either of the founders to exit the company. According to reports, shareholders present at the Extraordinary General Meeting (EGM) were irked by the absence of Rakesh Gangwal at the meeting after having called for the EGM himself.

In a filing, InterGlobe Aviation informed BSE that the result of the voting was 51.4 per cent against and 48.6 per cent in favour. Share Price of the company on the opening bell was at Rs 1,451 and fell down to an interday low of Rs 1,431. However, the share price did recover after failing in the early trade but still remained in the red.

On Tuesday InterGlobe Aviation reported a twofold jump in profit at Rs 496 crore for the quarter ending December 31, compared with Rs 185.20 crore in the same quarter last year. Markets had reacted positively to the profit although Ronojoy Dutta, chief executive officer of IndiGo had said that the profits in the coming quarters might remain muted from here on.

Rakesh Bhatia’s family owns 38.23 per cent in the company while Gangwal along with a trust holds 36.65 per cent.

The spat between the two founders stems from a Share Holding Agreement between the two that gave either of the two RoFR on the other’s shares if one of them wanted to exit. Gangwal has alleged that there have been discrepancies in Related Party Transitions between IndiGo and Rahul Bhatia owned InterGlobe Enterprise.

HDFC Securities has put a Buy call on the stock after the rise in Q3 profit with a target price of Rs 1,750.