Source :TNN, May 20, 2010, 01.24am IST
NEW DELHI: UK-based Standard Chartered (SC) has launched its first ever Indian Depository Receipts (IDR) issue to enhance its market visibility and brand profile in India.
The foreign bank, which has a market capitalization of $50 billion at the London Stock Exchange plans to raise anything between Rs 2,400 and 2,700 crore through the issue, which is slated to open on May 25 and will close on May 28. The money raised will be repatriated to its parent company in UK.
The price band will be fixed and declared on May 24, during which the closing price of SC as on London Stock Exchange will be taken into consideration. On Wednesday, its share price on LSE appreciated by 1.5% to $2.49.
"The issue price will be at a discount of 5% for the retail investors, over institutional investors," group executive director Jaspal Singh Bindra said. The bank is offering 24 crore IDRs. Every 10 IDR will be representing one share of Standard Chartered. Foreign companies raise funds by issuing IDRs having underlying equity shares.
The StanC IDR will be listed both on the Bombay Stock Exchange and the National Stock Exchange, and investors will have the option to convert them into shares after one year.
Bindra said that India is the focus region for the bank, which plans to increase its headcount in India by 2,500 people during the current year to 20,000.
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