Mr. V. Vaidyanathan, Managing Director and Chief Executive Officer of IDFC First Bank Ltd has announced that he has sold 2,75,58,412 shares on 19th March 2020 for approximately Rs. 58 crores to close ESOP loan availed by him. He intends to sell about Rs. 35 crores worth of stocks today (20/3/2020) to entirely repay the residual ESOP Loan taken for exercising his ESOP shares to release his pledged shares. He has explained that with this sale he will have NIL ESOP Loan, and will not need to sell any more shares in the foreseeable future. He has also explained that the bank is doing wonderfully well on all counts, is on a great trajectory of performance on all parameters, and he looks forward to continue to build the bank to great heights with highest degree of corporate governance going forward as well. The exact extract of his intimation to the Compliance Officer of the bank is given below.
"I like to inform that I sold 2,75,58,412 shares yesterday to to close the ESOP loan availed by me to acquire the shares and I intend to sell about Rs. 35 crores worth of stocks today to entirely repay the residual ESOP Loan taken for exercising my ESOP shares and to release the pledged shares. I would like to clarify that I still hold 4,23,47,144 shares (0.88%) after yesterday's sale. The prices of the stock has come down recently due to the Coronavirus related development in the stock market across all sectors including all Banks which resulted in margin call, and at this stage I decided to sell the stock to entirely square the ESOP Loans. With the sale of Rs. 35 cores expected today, my loans against shares will be NIL. I have no other loans other than a home loan.
We are building a wonderful bank with strong trajectory of growth of branches, strong growth in retail loans, sharp improvement in CASA, with low NPA and high capital adequacy. All our trajectory strongly positive across all parameters. Hence I deeply regret sale of shares at this growth stage of our bank given the wonderful prospects, but I had to do the same to square the ESOP Loan. I believe there will be no need for me to sell any more shares in the foreseeable future.
Under the disclosure requirements, I am required to disclose the sale done yesterday within 2 working days. However, in interest of highest level of corporate governance, I am making disclosure within 1 working day and also disclosing the intent to sell only today, and also sharing the extent of sale ahead of reporting requirements. Even after this sale I will hold approximately 13 crores stocks and options in the bank.
I am entirely committed to building one of the greatest banks in the country with the highest levels of corporate governance as we have always represented."
Shares of IDFC First Bank Ltd was last trading in BSE at Rs.20.65 as compared to the previous close of Rs. 23.85. The total number of shares traded during the day was 4263719 in over 7865 trades.
The stock hit an intraday high of Rs. 22.55 and intraday low of 20.3. The net turnover during the day was Rs. 90720512.