Shareholders Reject Warburg Pincus’ Proposal for IDFC First Bank Board Nomination

IDFC First Bank shareholders voted against Warburg Pincus' proposal to nominate a non-executive director, with only 64.10% support, falling short of the required 75%. While institutional investors were mostly opposed, retail investors largely supported the move. The bank's other resolutions were approved with significant backing.

Devdiscourse News Desk | New Delhi | Updated: 19-05-2025 12:26 IST | Created: 19-05-2025 12:26 IST

Shareholders Reject Warburg Pincus’ Proposal for IDFC First Bank Board Nomination — This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.

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IDFC First Bank announced on Monday that its shareholders declined the proposal to allow Warburg Pincus to nominate a non-executive director to its board. Despite the bank board's earlier approval of a Rs 4,876 crore equity issue to Warburg Pincus affiliate Currant Sea Investments BV, the resolution needed 75% approval.

Only 64.10% of votes supported the change to the Articles of Association to enable the director nomination. Notably, 51.30% of institutional investors opposed the proposal, while 98.67% of retail investors supported it. Consequently, the special resolution failed due to a lack of the requisite majority as per Company Law.

In contrast, shareholders approved other resolutions, including the issuance of convertible cumulative preference shares worth Rs 7,500 crore and reclassification of share capital, both receiving overwhelming support. Currently, Warburg Pincus seeks regulatory approval to acquire a 9.99% stake in the bank.

(With inputs from agencies.)