UK based global bank Standard Chartered (SC) Plc on Tuesday said it will come out with the first ever Indian Depository Receipts (IDR) issue to enhance its market visibility and brand profile in India.
The foreign bank plans to raise anything between Rs 2,400 to 2,700 crore through this IDR issue, which is slated to open on May 25 and shall close on May 28.
The price band for the issue will be fixed and declared on May 24, during which the closing price of SC Plc as on London Stock Exchange will be taken into consideration.
"It will be a historic moment for us when the issue of 24 crore IDR's opens on May 25. Every 10 IDR's will be representing one share of Standard Chartered Plc," Standard Chartered Chief Executive India and South Asia Neeraj Swaroop told reporters.
Like American Depository Receipts (ADRs) where Indian Companies raise resources overseas, IDR's enables foreign origin companies to do the same from India.
"The IDR's will be listed both on Bombay Stock Exchange and National Stock Exchange, and investors will have the option to convert them into shares after one year," he said.
"The issue price will be at a discount of five per cent for the retail investors, over institutional investors," Neeraj said.