Charity Begins Not Just At Home. In case of Capital First Founder and Chairman Vaidyanathan Vembu, charity has commenced from his office literally!
On the onset of Diwali, the home-grown entrepreneur decided to share the joy with his present and former colleagues, personal staff as well as close relatives. He chose to take ‘Corporate Philanthropy’ at a new level by gifting bonus gift of shares worth Rs. 20 crores.
However, as per the founder, this gesture is not linked to the festivities. He has chosen to offer this as a token of his appreciation for each and every member’s contribution to his company’s growth. In a official statement released by the company to the exchanges, they remarked that Vaidyanathan has expressed his desire to transfer a part of his personal holding to the select colleagues who helped the company reach where it is today. Vembu will be parting with a total of 4.29 Lakh shares, the value for which is Rs. 20 crore approximately at the current market price of ₹478.60 on the BSE. The bifurcation will be as follows :
- Total 11,000 Shares (₹5.2 Crore) : 23 Present and 3 Former Colleagues
- 6,500 Shares (₹3.11 Crore) Each : To 5 of his Personal Staff, including driver and house maid
- Additionally 1.10 Lakh Shares (₹5.26 Crore) : Close Family Members and Relatives
The statement said that none of the above recipients are the legal heirs or successors to Vaidyanathan and thus will have to incur the necessary taxes on this bonanza. The dilution of shares will bring down Vembu’s personal holding in the company from 40.4 Lakh shares to 36.11 shares totally.
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This generous windfall comes at a time when the financial services provider is about to get merged with IDFC Bank. The company in it’s statement also said that Vaidyanathan strongly felt towards the efforts put in by all colleagues in his venture that started in 2010. Initially, they had no access to either debt nor equity. Further, the years 2012-13 were even more disturbing when the economic environment in India was unstable and the interest rates were constantly rising. Vembu attributed his company’s success to everyone who joined him, leaving their well paying jobs at the peak of their careers. Their dedication in formulating strategies, introducing innovations and discovering new lines of business could never be forgotten.
What makes this a bigger news, is that Vaidyanathan has also not left out his ex-colleagues who are no longer working in the company. He has chosen to reward three such employees whose contribution has been immense.
With this contribution, Vaidyanathan Vembu joins the likes of Bill Gates and Warren Buffet internationally to Ratan Tata, Aziz Premji, Shiv Nadar, Ardeshir Godrej and many more back home towards their responsibility in enhancing corporate philanthropy.