Mumbai: Diwali has come early for two drivers, three maids, some colleagues and family members of Vaidyanathan Vembu, the promoter and chairman of Capital First Ltd. He has gifted nearly 430,000 shares worth over ₹20 crore to these people.
While Vaidyanathan is giving away 6,500 shares each to the maids and drivers, 26 former and present colleagues will get 11,000 shares each. Satyamurthy Vembu, a brother, gets 26,000 shares. Another brother, Krishnamurthy Vembu, gets 13,000 shares, the company said in a stock exchange filing. Eight other family members get 71,500 shares.
Capital First chief’s gift makes millionaires of maids, drivers, family
On Friday, the company’s shares ended at ₹478.60 each, valuing 11,000 shares at ₹52.64 lakh. Shares of his drivers and maids are valued at ₹31.1 lakh each. So far this year, the scrip has fallen 31%.
Vaidyanathan, who holds 4.04 million shares or a 4.08% stake in the company, said when his company was in a start-up phase in 2010, some people joined leaving well-paying jobs and helped it grow. “The company is now on the threshold of a merger with an existing bank and it is a significant milestone because of access to a bank platform. Before the start of the new journey, he has expressed a desire to thank and honour those who have bought it to this strong position,” the company told the exchanges.
“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 company said. “The transfers are purely for reasons of love and affection and not for any other reason such as tax planning,” it added.
Last month, Capital First shareholders cleared its merger with IDFC Bank. IDFC Bank will issue 139 shares for every 10 shares of Capital First. Post merger, Rajiv Lall, managing director and chief executive officer (MD and CEO), IDFC Bank will take over as non-executive chairman. Vaidyanathan will be the MD and CEO.