StanChart shareholders approve India listing plan

StanChart shareholders approve India listing plan

London/New Delhi: Global banking major Standard Chartered Plc has said its shareholders have approved the sale of shares for a planned India listing to raise up to $1 billion.

Standard Chartered Bank in March said it plans to raise between $500 million and $1 billion by June through Indian Depository Receipts issued by parent entity Standard Chartered Plc.

The bank has said that its shareholders have approved plans to allot shares in connection with a planned India listing at the company’s Annual General Meeting on 7 May.

“We remain keen to pursue our intent to have an IDR offering ... we are looking at quarter two (April-June 2010) and we are looking at $500 million to $1 billion," Standard Chartered Bank (South Asia) chief executive Neeraj Swaroop had said.

The foreign banking major, which has its presence in India for 150 years, is the first entity to seek to list IDRs.

StanChart is also believed to be looking at roping in anchor investors for its IDR issue.

IDRs are depository receipts that enable foreign companies to raise money from India.

According to Sebi guidelines, IDRs can be issued by companies that have been listed in the home market for a minimum of three years and running in profit for at least three of the five years before the issue.

The bank had filed a draft red herring prospectus (DRHP) for its IDR with capital market regulator Sebi in March.

StanChart has appointed a host of investment bankers, including Goldman Sachs, UBS, JM, Kotak Mahindra, SBI Capital and DSP Merril Lynch, to advise it on the proposed IDR issue.