Standard Chartered raises Rs374.4 crore with allotment of IDRs to anchor investors
26 May 2010
Standard Chartered Bank on raised Rs374.4 crore with the allotment of 3.6 crore Indian depository receipts (IDRs) to six anchor investors ICICI Prudential Asset Management Company, Franklin Templeton Investments, Sundaram BNP Paribas Mutual Fund, Birla Sunlife Mutual Fund, HDFC Mutual Fund and Reliance Capital Mutual Fund, a day ahead of the opening of its public offer yesterday. The receipts were allotted at Rs104 each.
The British bank had set the price band for the proposed issue of 24 crore IDRs at Rs100-115 each. Retail investors would be allotted shares at a discount of 5 per cent to the issue price. The issue which opened for subscription on 25 May will close on 28 May.
The IDRs would be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE); the bank is already listed in London and Hong Kong.
Ten IDRs will represent one underlying equity share of Standard Chartered Plc and the proceeds of the issue would be added to the overall capital reserves to support the bank's business growth.
Asia-focused British bank Standard Chartered's IDR is the first issue of its kind in India. IDRs enable foreign companies to raise resources in Indian much like American or Global Depository Receipts allow Indian companies to raise resources overseas.
As per SEBI guidelines, IDRs can be issued by companies that have been listed in the home market for a minimum period of three years and have declared profits in at least three of the five years prior to the issue.