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StanChart’s IDR sale raises Rs2,500 crore

StanChart’s IDR sale raises Rs2,500 crore
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First Published: Sun, May 30 2010. 10 25 PM IST
Updated: Sun, May 30 2010. 10 25 PM IST
Mumbai: British bank Standard Chartered raised close to Rs2,500 crore after pricing its Indian depositary receipts (IDRs) towards the lower end of the indicated range on Sunday in the first issue of its kind.
Standard Chartered will list the IDRs on the local stock exchanges on 11 June.
Standard Chartered sold 240 million IDRs at Rs104 each in a public offering that closed on Friday, compared with a price range of Rs100-115.
On Monday it had allocated 36 million of those shares to a group of cornerstone investors.
The bank’s sale of Indian shares ended successfully after volatile global markets and a new payment rule weighed on demand during its first three days. Investors bid for around 2.2 times the 204 million IDRs on offer to the public. Every 10 IDRs represent one share of Standard Chartered Plc. The bank said in a statement on Sunday it would allot the 24 million new shares, to be issued in connection with the IDR issue, on or around 7 June.
StanChart’s has said the offering was aimed more at building its brand and presence in its second largest market by profit than about raising funds.
If the listing proves a success, it may prompt other foreign companies with a large consumer presence in India to make similar offerings.
UBS AG, Goldman Sachs, JM Financial Consultants, Bank of America-Merrill Lynch, Kotak Mahindra Capital and SBI Capital Markets managed StanChart’s offering.
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First Published: Sun, May 30 2010. 10 25 PM IST
More Topics: Standard Chartered | Markets | Stocks | India | IDRs |