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StanChart IDR issue to open on May 25

UK-based banking major Standard Chartered plans to hit the Indian markets with its initial share sale from May 25 to 28 to raise $500-750 million, becoming the first foreign entity to list its shares in the country's bourses.

india Updated: May 13, 2010 19:14 IST

UK-based banking major Standard Chartered plans to hit the Indian markets with its initial share sale from May 25 to 28 to raise $500-750 million, becoming the first foreign entity to list its shares in the country's bourses.

The bank plans to sell 240 million shares or Indian Depository Receipts (IDRs), with every 10 IDR representing one share of Standard Chartered plc.

"The IDR issue is a strategic move to reinforce our commitment in the market...Allowing investors in India direct access to our performance," Standard Chartered Group Chief Executive, Peter Sands told reporters in Mumbai.

Stanchart said retail investors and its eligible employees, whose bid amount does not exceed Rs one lakh, will be given a 5 per cent discount. The issue is likely to have an anchor investor.

The shares will be listed both on Bombay Stock Exchange and National Stock Exchange. The price-band will be announced later.

IDRs are derivative instruments that derive their value from the shares deposited with custodians. The foreign companies deposit shares with a custodian, who in turn issues depository receipts based on these shares.