IDFC First Shareholders Block Warburg’s Bid For Board Seat

Shareholders of IDFC First Bank have voted down a proposal to let Warburg Pincus’ affiliate, Currant Sea Investments, nominate a non-executive director to the bank’s board, the lender told the exchanges.

The bank’s board had earlier approved a ₹48.76 billion preferential equity issue to Currant Sea, which would give the private equity firm a 9.48% stake in the bank.

In a postal ballot, 64.1% of shareholders backed the special resolution to amend the articles of association and grant Currant Sea the right to appoint a non-retiring, non-executive director. However, the proposal needed 75% support to pass.

More than half of institutional shareholders, who hold 54.14% of the bank and made up over 76% of the votes cast, opposed the move. Retail shareholders, holding 45.86%, overwhelmingly supported the resolution with 99% in favour.