While the first ever Indian depository receipts (IDR) issue from Standard Chartered managed an overall subscription of 2.2 times, thanks to help from qualified institutional buyers (QIBs), retail investors played shy despite the special five per cent discount offered to them. Overall, the retail portion of the IDR received barely 25 per cent interest.
While the bank looks satisfied with the response, experts feel that the issue witnessed a weak retail investor interest because of the extreme volatility in the markets.
“While the market conditions are weak, IDR is a new concept for Indian retail investors and it will be subject to foreign exchange volatility, which has raised concerns among retail investors,” said Aseem Dhru, CEO, HDFC Securities.
While the issue was priced between Rs 100 and Rs 115 and looked set to raise Rs 2,760 crore at the higher end of the price band, StanChart on Sunday announced the allotment price at Rs 104 per IDR.