Confident of resolving matter regarding appointment of Warburg Pincus' arm director: IDFC First Bank

IDFC First Bank on Tuesday said it is confident of resolving the matter relating to appointment of a director by global private equity firm Warburg Pincus' arm, which was not approved by the shareholders.

Shareholders of IDFC First Bank have voted against a proposal to nominate a non-executive director of Warburg Pincus' arm Currant Sea Investments BV on the bank's board.

In a regulatory filing on Tuesday, IDFC First Bank said, ''Regarding the right to nominate a Director in Articles of Association not receiving requisite majority, we are confident of working through this matter, and we are also proceeding with seeking other remaining regulatory approvals in parallel''.

Last month, IDFC First Bank board had approved a preferential equity issue of about Rs 4,876 crore to Currant Sea Investments BV, an affiliate company of investor Warburg Pincus LLC.

Following that, the bank sought shareholders' nod through postal ballot to amend the Articles of Association of the bank. It sought their approval to provide a right to Currant Sea Investments BV (or any of its assignees) to nominate one non-retiring non-executive director by way of a special resolution.

As per the results of the postal ballot disclosed to the stock exchanges on Monday, only 64.10 per cent of the votes were in favour of the resolution, while 35.90 per cent were against it.

Under Company Law, a special resolution is passed if the proposal gets at least 75 per cent of votes in favour of it.

Earlier this month, Warburg Pincus, through its arm Currant Sea Investments, had sought Competition Commission of India (CCI) nod to acquire 9.99 per cent stake in IDFC First Bank by subscribing to over 81.26 crore compulsorily convertible cumulative preference shares.

Shares of IDFC First Bank ended at Rs 67.16 apiece, down 2.17 per cent on BSE.

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