HCL founder Shiv Nadar gifts 47% stake to daughter

As part of a strategic succession plan, billionaire Shiv Nadar, founder of HCL, on Saturday announced gifting 47 per cent of his stake in HCL Corp and Vama Delhi to his daughter Roshni Nadar Malhotra.

In a stock exchange filing, the companies said after the transfer, Roshni will acquire control and become a majority shareholder of Vama Delhi and HCL Corp, HCLTech, and HCL Infosystems Ltd. It mentioned that by virtue of her stakes in Vama Delhi and HCL Corp, she will become the largest shareholder of HCL Infosystems Ltd and HCL Tech.

The filing submitted: A gift deed dated March 6 executed by Shiv Nadar in favour of his daughter Roshni Nadar Malhotra for transfer of his 47 per cent shareholding in Vama Sundari Investments (Delhi) Private Limited (Vama Delhi); and a gift deed dated March 6 executed by Shiv Nadar in favour of his daughter Roshni Nadar Malhotra for transfer of his 47 per cent shareholding in HCL Corporation Private Limited (HCL Corp).”

“Gift Deeds have been executed pursuant to a private family arrangement intended to streamline succession, which would ensure continuity of ownership and control by Shiv Nadar Family (promoter family) and would provide desired stability to the company,” it added.

Meanwhile, the capital market regulator Securities and Exchange Board of India (SEBI) has granted Malhotra an exemption from making an open offer, facilitating the smooth transfer of shares.

Prior to the execution of the gift deeds, the father and daughter held 51 per cent and 10.33 per cent shareholding, respectively, in Vama Delhi and HCL Corp.

The filing divulged: “Roshni Nadar Malhotra will acquire control, and become majority shareholder, of Vama Delhi and HCL Corp, and accordingly will acquire control over the voting rights in relation to the 12.94 per cent stake held by Vama Delhi and 49.94 per cent stake held by HCL Corp in HCL Infosystem.” In HCL Tech, she will acquire control over the voting rights in relation to the 44.17 per cent stake held by Vama Delhi and the 0.17 per cent stake held by HCL Corp in the company.

Malhotra, who holds an undergraduate degree in Communications from Northwestern University and an MBA from the Kellogg School of Management, is the chairperson for HCLTech, a multinational IT services and consulting firm. She had taken over the role at the $12 billion technology company in July 2020 from her father.

Beyond her corporate role, she is involved in philanthropic activities through the Shiv Nadar Foundation, which is focused on education and has established some of India's top colleges and schools, and conservation efforts via The Habitats Trust.