V. Vaidyanathan, Executive Chairman, Non-Banking Finance Company (NBFC) Capital First, presented a new example. He has announced to give 10.61 per cent of his shares to family members, colleagues, previously worked people, drivers and domestic servants before the company’s merger with IDFC Bank.
In a notice to the stock exchange, V. Vaidyanathan said that he wants to transfer 4.29 lakh shares out of his total 40.40 lakh shares. He has said that he is doing this to show love and attachment to these people.
Capital First, in a statement sent to the stock exchange, said, “The company is close to merger with an existing bank and the merger is very important. Prior to the start of the new journey, he has expressed a desire to thank those people who have helped him reach this strong position from the startup position of 2010.
The announcement of the merger of Capital First with IDFC was done on January 13 and will be completed by the end of 2018. Deal of both the shareholders of the parties and the Reserve Bank of India (RBI) has been approved. According to the agreements, IDFC will issue 139 shares per 10 shares of Capital First.
The people who will receive these shares include 23 existing associates, 3 former associates, two brothers of Vaidyanathan and one sister, father-in-law, wife’s uncle, wife’s cousin, 2 drivers and three servants. According to Capital First, the total value of these shares is Rs 20.53 crores at Rs 478.60 per share. Most 26,000 shares will be shared with V. Vaidyanathan’s brother Satyamurti Wenbu.
Let me tell you, V. Vaidyanathan has brought the company Capital First in the loss of Rs 29 crores in 2008 to new heights by hard work and diligence and in the year 2018 the company has made a profit of Rs 327 crores.