Sarve Bhavantu Sukhinah: Capital First Chairman  Donates Rs 20 Crore To Employees And Colleagues As Diwali ApproachesCapital First Founder and Chairman Vaidyanathan Vembu (Abhijit Bhatlekar/Mint)

Capital First Founder and Chairman Vaidyanathan Vembu has joined the illustrious ranks of corporate philanthropists with the likes of Bill Gates, Warren Buffets and Shiv Nadar by gifting shares worth Rs 20 crore to his staff, colleagues and close relatives.

The gesture is to appreciate the contributions of the people to the company’s growth. It comes at a time when Capital First is about to be merged with IDFC Bank , as reported by Business Line.

The official statement, quoting Vaidyanathan said that the in the early days of the company when the financial environment in India was disturbed and they had no access to equity or debt, lots of people joined and supported the company.

They left lucrative jobs, knowing the difficulties of a nascent business and created the company through hard work and innovations and that this was an appreciation for them, he added.

Vaidyanathan has gifted 4.29 lakh shares worth Rs 20 crore at the current market price of Rs 478.60 on the BSE

11,000 shares each go to 23 of his colleagues and three former employees and 6,500 shares each go to his five personal staff which includes drivers and housemaids. Also, 1.10 lakh shares go to his close family members and relatives, none of whom are heirs or successors. The beneficiaries have to pay tax on their bonanza. Three persons among the listed colleagues are no longer in the organisation but their contribution cannot be forgotten, Vaidyanath said.

After the gifts, Vaidyanathan’s shares will come down to 36.11 lakh from 40.4 lakh.

After the merger, Rajiv Lall, the Managing Director and CEO of IDFC Bank, will take over as Non-Executive Chairman of the merged entity, and Vaidyanathan will become its MD and CEO.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement