Source :business Line Bureau,May24,2010
Mumbai, May 24 The Standard Chartered Indian Depository Receipts (IDR) issue fetched subscription from six anchor investors at Rs 104 a piece.
This is closer towards the lower end of the price band which has been fixed at Rs 100-115 for the issue.
At these prices the foreign bank can raise Rs 2,400 crore at the lower end and Rs 2,760 crore at the upper end of the price band. At Rs 104 an IDR, the bank has raised Rs 374 crore through the anchor investors with whom 3.6 crore receipts were placed.
This represents 15 per cent of the total issue. The price band has been benchmarked to the stock price of the bank on the LSE at close of Friday. On Friday the shares of Standard Chartered closed at œ16.09. Each share represents 10 IDRs.
Reliance Mutual Fund subscribed for 1.05 crore IDRs, ICICI Prudential AMC for 96 lakh, HDFC AMC 60 lakh, Franklin Templeton AMC 48 lakh, Birla Sun Life Mutual Fund 35.5 lakh and Sundaram BNP Paribas for 14 lakh. The IDR issue will open to the general public on Tuesday and will close on May 28.
Retail investors and eligible employees subscribing to IDRs and whose bid amount does not exceed Rs 1 lakh, will get a 5 per cent discount to the final issue price. Retail investors have been allotted 30 per cent of the IDRs.
Qualified institutional buyers have been reserved 50 per cent of the issue and High Networth Individuals 18 per cent. "Allotment of the IDRs is scheduled to be completed by June 7, 2010 with listing on BSE and NSE shortly thereafter," the bank said in a press release on Sunday.
The shares of Standard Chartered are listed on both the Hong Kong and London stock exchanges. Standard Chartered PLC has a market capitalisation of more than $50 billion and in 2009 reported a profit before tax of $5.15 billion.
The Book Running Lead Managers (BRLM) are UBS Securities India Private Ltd and Goldman Sachs (India) Securities Private Ltd (as Global Coordinators); and JM Financial Consultants Private Ltd, DSP Merrill Lynch Ltd, Kotak Mahindra Capital Company Ltd and SBI Capital Markets Ltd. Standard Chartered - STCI Capital Markets Ltd is a co-book running lead manager.
tania@thehindu.co.in
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