StanChart files for India listing of depository shares

Standard Chartered Plc today filed a draft red herring prospectus with the Securities Exchange Board of India (SEBI) to raise up to $750 million through an issue of Indian Depositary Receipts (IDRs).

StanChart said the listing and the issue of IDRs, which represent the underlying new ordinary shares of the company, would depend on market conditions and further regulatory approvals.

"Our intention to be the first company to list IDRs demonstrates how important India is to Standard Chartered. India is one of our largest and fastest-growing markets and achieved over $1 billion in profits in 2009. We have a 150-year heritage in India. This is a unique opportunity to raise our profile and allow investors in India to participate in our future," said Peter Sands, group chief executive of Standard Chartered.

StanChart said it would make further announcements on the IDR issue in due course after the completion of SEBI's review of the prospectus and the company's further consideration of the proposal.

Standard Chartered said in a statement that it has demonstrated a consistent track record of sustained financial performance across the markets in Asia, Africa and the Middle East. The bank reported the seventh consecutive year of record income and profit, delivering compound annual growth rates of 19 per cent in income and 22 per cent in profit over the period.

"Against this, StanChart's operations in India have consistently delivered compound annual growth rates of 24 per cent in income and 30 per cent in profit since 2002," the statement said.