Damani mixes BAT pick for chair of VST Industries

Top billionaire investor and D-Mart promoter Radhakishan Damani opposed the candidate for chairmanship proposed by British American Tobacco (BAT) for its Indian unit VST Industries Ltd, leading to his rejection at a shareholder vote, according to voting disclosures and an executive privy to the development.

- Varun Sood & Nehal Chaliawala

Opposition from Damani, who owns nearly a third of India's third largest cigarette maker, marks a rare episode of opposition from the investor who holds more than 1% shares in 11 publicly listed companies.

BAT, the promoter of VST Industries with 32.16% shareholding, first appointed its executive Naresh Kumar Sethi as director on the board of the Hyderabad-based cigarette maker in November 2018.

VST sought shareholder approval to reappoint Sethi as executive chairman from non-executive director for five years from 5 November.

However, Damani opposed Sethi's appointment. Among non-institutions who own 56.9% of VST, 95% voted against Sethi's candidature.

Despite 91% approval from public institutions, which own 10.9%, and the promoter voting for the resolution, Sethi's appointment failed to pass, since it got only 56% votes.

Special resolutions require approval from 75% of shareholders.