StanChart seeks nod for $500 mn IDR issue | india | Hindustan Times
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StanChart seeks nod for $500 mn IDR issue

india Updated: Mar 30, 2010 22:35 IST
HT Correspondent

Moving ahead with its listing plans in India, Standard Chartered filed an 803-page draft red herring prospectus (DRHP) for its — and the country’s — first Indian Depository Receipt with the Securities and Exchange Board of India (Sebi) on Tuesday.

The company aims to raise over $500 million (Rs 2,250 crore), but says the exercise is primarily aimed at building its brand in the country.

IDRs are receipts, and represent underlying ordinary shares of the company. The company plans to get listed by June — the third market after UK and Hong Kong where it would be listed.

The funds raised through the IDRs will not benefit growth plans as Standard Chartered will have to remit the funds to the holding company in UK as per IDR guidelines.

“While the money raised through IDR can’t be used here it will become fungible as part of the central pool. Whenever we need capital for business in India, the group provides us the same,” said Neeraj Swaroop, CEO, Standard Chartered Bank, India Region.

“It will allow Indian investors to take part in the bank’s (overall) growth story,” he said.

The oldest international bank in India operates in 70 countries and has a market capitalisation of over Rs 2,44,000 crore.