IndiGo Shares Soar 4% Despite ₹22 Crore DGCA Fine: What Drove the Surge?

• IndiGo's parent company, InterGlobe Aviation, was fined ₹22 crore by DGCA for cancelling over 2500 flights and delaying 1852 flights in December, affecting 3 lakh passengers.
• Despite the fine, IndiGo shares closed up 4% at ₹4927 on BSE, reaching an intraday high of ₹4950.
• Global brokerage Jefferies' report suggested the fine was relatively small compared to the scale of cancellations, easing market fears.
• The fine amount is only about 0.31% of IndiGo's estimated annual profit for FY2025, leading investors to view it as a 'controlled loss'.
• DGCA also directed IndiGo to deposit a ₹50 crore bank guarantee and remove the head of operations control, emphasizing long-term systemic improvements.

Why It Matters: IndiGo shares surged despite a ₹22 crore DGCA fine, as investors deemed the penalty manageable.