Rs20 crore Diwali gift! V Vaidyanathan of Capital First gifts personal shares to colleagues, close relatives and family staff
Capital First's founder and chairman V Vaidyanathan has gifted 4.29 lkah shares, worth over Rs20 crore from his personal stake to 26 of his colleagues, three former employees, 10 close relatives and five of his personal staff including house help and drivers. This is a gesture of gratitude to his colleagues, close relatives and personal staff, who stood with him in all the ups and downs of building the Capital First brand. 
 
In a regulatory filing, Capital First says, "He (Mr Vaidyanathan) has expressed that he is extremely grateful to all people mentioned in the note for building the organisation since practically its start-up stage in 2010, to its current position of strength. The company is now on the threshold of a merger with an existing bank, and such merger is a significant milestone because of access to a bank platform. Hence before the start of the new journey, as an expression of thanks, he has gifted 11,000 fully paid up shares to each of the 26 said employees, totalling to 2,86,000 shares of Capital First held by him in his personal capacity." 
 
The 26 employees of Capital First, who had received the Diwali gift from the company chief, include Apul Nayyar, Nihal Desai, Pankaj Sanklecha, Pradeep Natarajan, Adrian Andrade, Shikha Hora, Ashok Patil, Jeetinder Diwan, Mahesh Dholiya, Rahul Jain, Rishi Mishra, E Narayanan, Mahesh Payannavar, Saptarshi Bapari, Sunil Biyani, Swetha Shetty, Amitish Misra, Nilesh Doshi, Satish Gaikwad, Nripendra Singh, Sachin Agarwal, Daryl Dsouza, and Rahul Ghule. Three people, who are not working at Capital First, also received the Diwali gift from Mr Vaidyanathan. This includes Amit Mande, Reshma Narang and Shakil Khan. Mr Nayyar and Mr Desai are executive directors of Capital First. 
 
The filing also added that "Mr Vaidyanathan is extremely grateful to 10 of his close family members and has transferred to them an aggregate of 1,10,500 fully paid up equity shares. It is clarified by Mr Vaidyanathan that none of the recipients are his heirs or successors. Mr Vaidyanathan has also expressed his extreme gratitude to five of his personal staff and has gifted them an aggregate of 32,500 fully paid up Capital First shares," the company added.
 
His close family members, who received his largesse include his two brothers, group captain Satyamurthy Vembu and Krishnamurthy Vembu and sister Savitri Krishnamurthy and seven relatives from his spouse’s side, including Mr Vaidyanathan’s father in law and sister in law. Mr Vaidyanathan's personal staff received 6,500 shares of Capital First.
 
Capital First is on the threshold of a merger with IDFC Bank. Last month, shareholders of Capital First, Capital First Home Finance and Capital First Securities Ltd have approved the amalgamation. Post merger, Rajiv Lall, managing director and chief executive of IDFC Bank will become non-executive chairman, while Mr Vaidyanathan will be the new MD and CEO of the bank. 
 
Mr Vaidyanathan founded Capital First by first acquiring an equity stake in an existing non-banking finance company (NBFC), and then executing a management buyout (MBO) by securing an equity backing of Rs810 crore in 2012 from PE Warburg Pincus. The MBO included buyout of majority and minority shareholders through open offer to public, raising fresh capital of Rs100 crore, reconstitution of the board of directors, change of business from wholesale to retail lending and creation of a new brand ‘Capital First’. 
 
Between March 2010 to March 2018, Mr Vaidyanathan has grown retail financing book of Capiutal First Rs25,243 crore ($3.88 billion) from Rs. 94 crores ($14 million). During this period, the company’s capital increased to Rs2,618 crore ($402.70 million) from Rs690 crore ($106 million) while its market cap jumped to Rs6,096 crore ($940 million) from Rs790 crore ($122 million).
 
As on September 2018, Capital First had an asset under management (AUM) worth Rs32,000 crore. During FY2018, the company had recorded a net profit of Rs327.4 crore and has received recognition from across the world. 
 
Post the Diwali gift, Mr Vaidyanathan’s stake in Capital First has come down to 36.11 lakh shares in his personal capacity and 4.94 lakh shares as trustee of Rukmani Social Welfare Trust. 
 
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COMMENTS

RAVINDRA PRABHAKAR JOSHI

1 week ago

What a wonderful example of values learnt, applied. Our culture examplified ! Salute to Mr. Vaidyanathan.

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Nifty, Sensex May Head Higher If Today's Low Holds – Thursday closing report

We had mentioned in Wednesday’s report that Nifty, Sensex might continue to rise. The major indices of the Indian stock markets were range-bound on Thursday and ended flat over Wednesday’s close. On the NSE, there were 1,134 advances, 596 declines and 329 unchanged. The trends of the major indices in the course of Thursday’s trading are given in the table below:

 

 
Despite firm global cues and a slight recovery in the domestic currency, the key equity indices traded flat during the afternoon session of trade on Thursday as investors remained cautious ahead of key macro-economic data release and tension between the RBI and government. Export-oriented stocks, IT (information technology) and healthcare struggled as the rupee recovered to around 73.79 a US dollar from Wednesday's close of 73.95. Buying was witnessed in banking, finance and capital goods counters on BSE.
 
A faster rise in demand accelerated the pace of India's manufacturing sector output in October, key economic data released on Thursday showed. According to the Nikkei India Manufacturing Purchasing Managers' Index (PMI), the composite indicator of manufacturing performance increased to 53.1, from 52.2 in September. An index reading of above 50 indicates an overall increase in economic activity, or growth, and below 50 an overall decrease.
 
Revenue collections under the Goods and Services Tax (GST) crossed the Rs 1 lakh crore mark in October, Finance Minister Arun Jaitley said on Thursday.
 
HCL Technologies (HCL) on Thursday announced its collaboration with California-based Pivotal Software to help enterprises create a new generation of Cloud-native applications. As part of the collaboration, HCL will use Pivotal's software offerings and Platform Acceleration Lab (PAL), the company said in a statement. The company’s shares closed at Rs1,015.50, down 3.80% on the NSE.
 
Automobile major Maruti Suzuki India's overall sales, including exports for October, inched up by 0.2%. The company said on Thursday that total sales rose to 146,766 units in the month, compared to 146,446 units sold in the year-ago period. "Maruti Suzuki India Ltd sold a total of 146,766 units in October. This includes 138,100 units in domestic market and 8,666 units of exports," the company said in a statement. In the domestic market, it sold 138,100 units during October, up by 1.5% from 136,000 units sold in the corresponding month in 2017. However, the carmaker exported 8,666 units, registering a decline of 17% from 10,466 units shipped out in the year-ago month. Maruti Suzuki shares closed at Rs6,702.00, up 1.29% on the NSE.
 
Jet Airways said that it has received notices for payment "delays or defaults" from some aircraft lessors. "Whilst the company is in receipt of notices for payment delays or defaults from few aircraft lessors, they are mindful of the challenges currently faced by the Indian aviation industry and they have been supportive of the company's efforts," the airline said in a BSE filing. "We also wish to clarify that the company is current on its payments to Airports Authority of India (AAI) and no show-cause notice has been received by the company from AAI." The airline is financially suffering from an increase in Brent fuel price by more than 36 per cent, along with a weak rupee and a mismatch between high fuel prices and low fares primarily undermined its financial performance during the quarter under review. Jet Airways also plans to go in for a cost reduction programme to reduce expenses totalling Rs2,000 crore over two years. In addition, the company has decided for a "balance-sheet restructuring" which entails capital infusion and debt reduction. The company’s shares closed at Rs225.65, up 1.69% on the NSE.
 
Automobile major Tata Motors reported a standalone net profit of Rs109.14 crore during the quarter ended September 30, on the back of rise in sales. During the same period last year, the company reported a net loss of Rs283.37 crore, Tata Motors said in a statement. Total standalone income during the second quarter of the financial year 2018-19 was Rs18,102.56 crore, 33.77% higher from Rs13,532.64 crore earned during the corresponding period of FY18. It further said its total revenue from operations during the period under review rose by 32.85% to Rs 17,644.13 crore. In Q2 FY19, wholesales (including exports) grew 25% to 190,283 units with broad-based growth across the entire portfolio. Tata Motors shares closed at Rs178.75, up 0.06% on the BSE.
 
Global IT company Tata Consultancy Services on Wednesday announced the acquisition of W12 Studios, an award-winning digital design studio based in London, for an undisclosed sum. TCS shares closed at Rs1,934.60, down 0.15% on the BSE.
 
State-run Canara Bank reported Rs300-crore net profit, registering 15.4% annual growth for second quarter of fiscal 2018-19 from Rs260 crore in the same period a year ago. Canara Bank shares closed at Rs251.75, down 3.89% on the BSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

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