The founder and chairman of Capital First Ltd, Vaidyanathan Vembu, has ceded nearly 430,000 shares worth over 20 crore rupees of his personal participation to two of his drivers, three maids, former and current colleagues. and family members, before Diwali, the company said. Vaidyanathan offered the shares as a gesture of gratitude to those who supported him through all the ups and downs of building the Capital First brand, the company said in a public filing.
Capital First Friday said the founder, who owns more than 40 lakh shares or a 4.08% stake in the company, will transfer 6,500 shares each to the chambermaids and drivers; 11,000 shares each to 26 former and current colleagues; and 26,000 and 13,000 shares, respectively to two brothers Satyamurthy Vembu and Krishnamurthy Vembu, from his personal shares which he holds in the company. In addition, eight other family members will receive 71,500 shares.
Taking into account the closing price of the company’s shares on Friday at Rs 478.60 each, while the shares to be transferred to the chambermaids and drivers are valued at Rs 31.1 lakh, 11,000 shares to colleagues are worth 52.64 lakh Rs.
“Her immediate family members have been a tremendous source of strength and support. This is the opportunity for him to thank them. Therefore, he transferred part of his personal participation to his relatives. None of the recipients is his heir or successor, ”indicates the document on the stock exchange. Prior to founding Capital First, Vaidyanathan was Managing Director and CEO of ICICI Prudential Life Insurance and also served on the Board of Directors of ICICI Bank.
Last month, Capital First received shareholder approval for its merger with IDFC Bank. Under the agreement, IDFC Bank will issue 139 shares for every 10 shares of Capital First. Upon completion of the merger, Rajiv Lall, CEO and Managing Director of IDFC Bank, will assume the role of non-executive chairman, while Vaidyanathan will serve as its managing director and CEO.