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StanChart eyes rapid India growth through listing

StanChart eyes rapid India growth through listing
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First Published: Thu, May 13 2010. 07 25 PM IST
Updated: Thu, May 13 2010. 07 25 PM IST
Mumbai: Standard Chartered hopes its upcoming India share sale to raise up to $750 million will boost growth in one of the British bank’s fastest growing markets, its chief executive said on Monday.
The British bank will start selling shares in India from May 25 to 28, and the pricing will be decided one day prior to book opening, it said.
“Through this IDR (Indian depositary receipts) offering, we want to grow our brand and profile in a key market, to help drive continued rapid growth in our business here,” Peter Sands told a news conference.
“This is a clear demonstration, a powerful symbol of our commitment to India’s future.”
The share sale through IDRs will be India’s first such issue.
StanChart, which is also listed in Hong Kong, will issue 240 million IDRs, with every 10 IDRs representing one share of Standard Chartered Plc., according to its red herring prospectus.
A banker, working on the transaction, said that the price band for the issue would be decided on 23 May and bids from anchor investors would be invited on 24 May, a day before the bookbuilding process begins.
Sources told Reuters on Monday the bank was hoping to raise about $600 million.
StanChart has said previously it planned to raise up to $750 million through the issue to raise its profile in what may soon become its biggest market.
The largest international bank in India, where it has been for 152 years, StanChart has 94 branches and 17,500 staff in the country. It is expanding across Asia after weathering the financial crisis better than most rivals.
Standard Chartered’s profit in India rose 19% to $1.06 billion last year, contributing 21% of group earnings, ranking India fractionally behind Hong Kong as the biggest profit contributor.
The bank has hired UBS AG, Goldman Sachs, JM Financial Consultants, Bank of America-Merrill Lynch, Kotak Mahindra Capital and SBI Capital Markets to manage the offering.
StanChart has appointed its STCI Capital Markets unit as a joint-book running lead manager.
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First Published: Thu, May 13 2010. 07 25 PM IST
More Topics: Standard Chartered | India | Growth | Markets | Bank |