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StanChart to issue IDRs by May 25: sources

StanChart to issue IDRs by May 25: sources
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First Published: Tue, May 11 2010. 11 27 AM IST
Updated: Tue, May 11 2010. 11 27 AM IST
Mumbai: Britain-based Standard Chartered aims to launch its share sale in India in two weeks and hopes to raise about $600 million, two sources with direct knowledge of the transaction said.
The sale of shares through Indian Depositary Receipts, the country’s first such issue, will be open 25-28 May, said the sources, who could not be named as they are not authorised to speak with the media.
The bank, which is also listed in Hong Kong, will issue around 240 million Indian Depositary Receipts, said one source, adding the roadshows for the offering is expected to begin later this week.
“We have been talking to foreign investors and large mutual funds to act as anchor investors for this issue and the response has been very positive,” one of the sources said.
Earlier, the Economic Times newspaper said, quoting unnamed sources, that each group share of Standard Chartered would represent 10 India shares.
A Standard Chartered spokesman declined to comment on the report.
“We will make an announcement at the right time,” he said.
Standard Chartered had previously said it planned to raise up to $750 million with an Indian share listing this year 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, has 94 branches and 17,000 staff in the country. It is expanding across Asia after weathering the financial crisis better than most rivals.
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 co-book running lead manager.
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.
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First Published: Tue, May 11 2010. 11 27 AM IST
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