IDFC First shareholders deny board seat to Warburg arm

A Setback

- MAHESH NAYAK

SHAREHOLDERS OF IDFC First Bank on Monday rejected a proposal to allow Currant Sea Investments BV, an affiliate of Warburg Pincus LLC, to nominate a non-executive director on the board.

The special resolution, which required a 75% majority, received 64.10% of votes in favour. The special resolution failed due to opposition from institutional investors, with 51.30% voting against it and 48.7% in favour. In contrast, retail investors showed an overwhelming support, with 98.67% voting in favour.

Last month, the IDFC First board had approved a preferential equity issue of about ₹4,876 crore to Currant Sea Investments. Following that, the bank sought shareholders' nod through postal ballots to amend its Articles of Association. It sought their approval to provide a right to Currant Sea Investments (or any of its assignees) to nominate one non-retiring, non-executive director by way of a special resolution.