Capital First founder gifts Rs 20 crore worth of shares to maids, drivers, colleagues, family
Capital First Ltd’s founder and chairman Vaidyanathan Vembu has given nearly 430,000 shares worth over Rs 20 crore from his personal shareholding to two of his drivers, three maids, some former and present colleagues and family members, ahead of Diwali, the company said. Vaidyanathan has gifted these shares as a token of gratitude to those who stood by him in all the ups and downs of building the Capital First brand, the company said in filing to stock exchanges.
Capital First Friday said that the founder, who owns over 40 lakh shares or a 4.08% equity stake in the company, will transfer 6,500 equity shares each to maids and drivers; 11,000 shares each to 26 former and present colleagues; and 26,000 and 13,000 shares, respectively to two brothers Satyamurthy Vembu and Krishnamurthy Vembu, from his personal shares that he holds in the company. Also, eight other family members will receive 71,500 shares.
Given the closing price of the company’s shares on Friday at Rs 478.60 each, while the shares to be transferred to maids and drivers are valued at Rs 31.1 lakh, 11,000 shares to colleagues are worth Rs 52.64 lakh.
“His close family members have been an immense source of strength and support. It is an opportunity for him to thank them. Hence, he has transferred a part of his personal stake to his near and dear ones. None of the recipients are his heirs or successors,” the stock exchange filing said. Before founding Capital First, Vaidyanathan was the MD and CEO of ICICI Prudential Life Insurance and was also on the Board of ICICI bank.
Last month, Capital First received approval from its shareholders for its merger with IDFC Bank. As part of the deal, IDFC Bank will issue 139 equity shares for every 10 shares of Capital First. Once the merger is completed, Rajiv Lall, chief executive officer and managing director of IDFC Bank will take over as non-executive chairman, while Vaidyanathan will be the MD and CEO.