Institutional investors voted against five resolutions of FSN E-Commerce Ventures, which operates online beauty and wellness products brand Nykaa, and one of Alkem Laboratories, that came up for voting on February 4.
During the week under review, the institutional shareholders approved 22 resolutions, including that of Siemens and IDFC, according to the data collated by proxy advisory firm Institutional Investor Advisory Services India (IiAS).
FSN E-Commerce’s resolution to seek amendments clauses in its Articles of Association (AoA) was dissented by 79.55% of votes. The institutional investors also voted against the company’s four other resolutions — including that to extend Employee Stock Option (ESOP) scheme to the staff of subsidiary firms and pre-initial public offering (IPO) ESOP – with 39.27% of their total votes.
“This was similar to that of Zomato, another unicorn, where investors had dissented resolutions proposed in September. The relatively low institutional holdings in both the instances (Zomato and FSN E-Commerce) ensured that the resolutions were carried,” IiAS said.
“This speaks of the disconnect between private equity investors and market investors. The sooner the unicorns and start-ups can bridge this gap, the easier it will be for them and better for the markets,” it added.
The institutional shareholders also voted against Alkem Laboratories’ resolution to appoint a whole-time director with 72.84% of their votes.
However, 22 other resolutions were approved during the week.
Three resolutions of Siemens – declaration of dividend, remuneration to accountants and change in place of keeping documents – were approved with 100% votes. Its resolution to reappoint a director (90.13%) and that of a non-independent director (87.79%) were also favoured by institutional investors.
Two resolutions of Poonawalla Fincorp (amendment to AoA and reclassification of certain promoters as public shareholders), four resolutions of RPSG Ventures (issuance of preference shares, the appointment of independent director among others) and two resolutions of Indiabulls Real Estate (reclassification of certain promoters to public shareholders and payment of commission to non-executive directors) were approved with 100% of votes.
Spandana Sphoorty Financial’s plans to raise upto Rs 300 crore through a Qualified Institutional Placement, Indostar Capital Finance’s resolution to appoint Deep Jaggi as chief executive officer and Accuracy Shipping’s resolution to alter Memorandum of Association were ascended with the entire institutional shareholders’ votes.
Indiabulls Real Estate’s resolution to issue securities of up to Rs 1,500 crore won 96.25% votes in favour, and another to appoint an independent director was approved with 98.24% of votes. IDFC’s resolution to appoint an independent director (99.99%) was also approved during the week.