The founder and president of Capital First Ltd, Vaidyanathan Vembu, has sold nearly 430,000 shares of his personal participation to two of his drivers, three maids, colleagues and family members, elders and presents, in front of Diwali announced the company. Vaidyanathan offered these shares as a token of gratitude to those who accompanied him in all the ups and downs of Capital First brand construction, said the company when filing with the stock exchanges.
Capital First Friday announced that the founder, who owns more than 40 lakh shares or 4.08% of the company's capital, will transfer 6,500 shares each to chambermaids and drivers; 11,000 shares each to 26 past and present colleagues; and 26,000 and 13,000 shares, respectively to the two brothers Satyamurthy Vembu and Krishnamurthy Vembu, from his personal actions that he holds in the company. In addition, eight other family members will receive 71,500 shares.
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Given the closing price of the company's shares on Friday at 478.60 rupees, while the shares to be transferred to maids and drivers are estimated at 31.1 lakh, 11,000 shares to colleagues are worth 52.64 lakh .
"The members of his immediate family have been an immense source of strength and support. This is the opportunity for him to thank them. As a result, he transferred part of his personal stake to his family and friends. None of the recipients are his heirs or successors, "said the stock market newspaper. Prior to founding Capital First, Vaidyanathan was Managing Director and CEO of ICICI Prudential Life Insurance and was also a member of the Board of ICICI Bank.
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Last month, Capital First received the approval of its shareholders for its merger with IDFC Bank. As part of the transaction, IDFC Bank will issue 139 shares for every 10 shares of Capital First. Upon completion of the merger, Rajiv Lall, Chief Executive Officer and Director of IDFC Bank, will assume the role of Non-Executive Chairman, while Vaidyanathan will be the Chief Executive Officer and Chief Executive Officer.