Shareholders rejected IDFC Bank’s proposal, investors will not join board

Last Updated: May 19, 2025, 12:10 ISTIDFC Bank Row: IDFC Bank of Private Sector proposed to include one of its big investors in the board, which has been rejected by public shareholders. Due to lack of majority in voting, the bank’s intention was also complete … Read more, the shareholders of the bank have rejected the board’s proposal. HighlightsIDFC Bank’s proposal was rejected by shareholders. The proposal to include Warberg Pinkus in the board. 75% of the votes were required to pass the Prasav. This is the first example in the corporate world when public shareholders have stopped equity investors of a company from gaining a position. This case has been introduced in IDFC Bank, where the bank shareholders have rejected the proposal to include Global Private Equity Chief Warburg Pinks through their associate Current C Investment Biwi. This means that the equity investor of the bank will not find any place in its board, while the minor investors investing in the bank, the public shareholders, have put a hurdle in it. 1 To decide on this, only 64.10 percent shareholders of IDFC First Bank have allowed private equity firm Warburg Pinks to be nominated to a non-respective, non-executive director in the bank’s board through their associate Current Sea Investments BV. At least 75 percent of the votes are required to pass a special proposal. In such a situation, Warburg Pinkus will not be able to appoint its representative to the bank board, as it has not got an absolute majority. Institutional investors also conducted the protest process, institutional investors have also voted against this proposal. More than 51 per cent of the votes cast by institutional investors were cast in protest. This opposition from institutional shareholders proved to be decisive, even though retail (non-institutional) shareholders supported the move with about 99 per cent of the votes. In the demand to change the rules, there was a demand to amend the paragraphs of IDFC First Bank, so that currant Sea Investments could be formally empowered to appoint a board member. This right is usually a standard expectation for large strategic or financial investors, especially in companies where they have significant capital investment. This is to say that big investors get the rights to include the company’s board. Investors on 2 proposals have been dismissed by the seals, even though the proposal to include it in the board has been rejected, but two other presentations have also been approved. One of this proposal was related to the rearction of the bank’s authorized share capital, while the other proposal was for the approval to issue compulsory cumulative preference shares of Rs 7,500 crore on a priority basis. Both these proposals got more than 99 percent of the votes. What are the rejection of this inhibitor’s board enrollment of Myneworberg reflects the concerns of investors within the bank and the individual that is flourishing between private equity stakeholders and public shareholders. This is also the first major example of disagreement among shareholders in private bank. Earlier in the year 2018, a similar manger was seen in HDFC Bank. Then 22.64 percent of the bank’s shareholders voted against the appointment of Deepak Parekh as non-executive director. Pramod Kumar Tiwari Pramod Kumar Tiwari likes to cover the stock market, investment tips, tax and personal finance. Explains complex subjects very easily. In newspapers, dozens of columns have also been written on personal finance. Journalist … Read more Pramod Kumar Tiwari likes to cover the stock market, investment tips, tax and personal finance. Explains complex subjects very easily. In newspapers, dozens of columns have also been written on personal finance. Journalist … Read more India’s latest news on news18 India Location: New Delhi, Delhihomebusiness shareholders rejected IDFC Bank’s proposal, what was the proposal

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