IDFC First Bank Ltd.'s Chief Executive Officer V Vaidyanathan has sold 2.75 crore shares for approximately Rs 58 crore to close an ESOP loan availed by him, the private lender said today.
Vaidyanathan, who is also the managing director of the company, intends to sell about Rs 35 crore worth of stocks on Friday to entirely repay the residual Employee Stock Option Plan loan taken for exercising his ESOP shares to release his pledged shares, IDFC First Bank said in an exchange filing.
"We have received an intimation from V Vaidyanathan, Managing Director and Chief Executive Officer of the Bank, that he has sold 2,75,58,412 shares on 19th March 2020 for approximately Rs 58 crore to close ESOP loan availed by him," the filing stated.
"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," IDFC First Bank said.
In an intimation to the bank's compliance officer, Vaidyanathan said, "I would like to clarify that I still hold 4,23,47,144 shares (0.88 percent) after yesterday's (Thursday) sale.”
“The stock had come down recently due to 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 crores expected today, my loans against shares will be nil. I have no other loans other than a home loan," he said.
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