The IDFC First Bank informed the stock exchanges on Tuesday that it is confident of resolving any issues related to the appointment of a director by global private equity firm Warburg Pincus' arm, which was not approved by the shareholders.
In the regulatory filing, IDFC First Bank said, "Regarding the right to nominate a Director in Articles of Association not receiving requisite majority, we are confident of working through this matter, and we are also proceeding with seeking other remaining regulatory approvals in parallel".
In the exchange filing, the bank also informed that 99.18 percent of the bank's shareholders have okayed the resolution to raise Rs 7,500 crores worth of funds. Going into the details, the bank stated that public institutions voted 99.38 percent in favour and public-non institutions voted 98.71 percent in favour of the fund raise.
The shareholders have also approved the resolution for corresponding reclassification of Authorised Share Capital — with 99.38 percent votes in favour of the move. All public institution stakeholders voted in favour of reclassification of the authorised share capital, it said.
In April this year, IDFC First Bank's board had approved a preferential equity issue of about Rs 4,876 crore to Currant Sea Investments BV — an affiliate company of investor Warburg Pincus LLC.
After this, the bank sought shareholders' approval through postal ballot to amend the Articles of Association of the bank. It sought shareholders' nod to provide a right to Currant Sea Investments BV (or any of its assignees) to nominate one non-retiring non-executive director by way of a special resolution.
Earlier on Monday, the bank disclosed the results of the postal ballot to the stock exchanges, showing that only 64.10 percent of the shareholders were in favour of the resolution, while 35.90 percent votes were against it. Under Company Law, a special resolution is passed if the proposal gets at least 75 per cent of votes in favour of it.
Earlier this month, Warburg Pincus, through its arm Currant Sea Investments, had sought approval from the Competition Commission of India (CCI) to acquire 9.99 percent stake in IDFC First Bank by subscribing to over 81.26 crore compulsorily convertible cumulative preference shares.
On the Bombay Stock Exchange (BSE), IDFC First Bank shares ended at Rs 67.16 apiece, down 2.17 percent.
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