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.