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| StanChart fixes price band of Rs 100-115 for IDR |
| Press Trust of India / New Delhi May 23, 2010, 14:29 IST |
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Global banking major Standard Chartered today announced a price band of Rs 100-115 a piece for its Indian Depository Receipts (IDRs), a move that would help the UK-based lender raise up to Rs 2,760 crore.
The issue, which will be the first of its kind in the country, will help the UK bank raise about Rs 2,760 crore at the upper price band, while on the lower side it would be able to raise Rs 2,400 crore.
The issue of StanChart Bank, comprising 24 crore IDRs, will open for public subscription on May 25 and close on May 28, following which the final issue price per IDR will be set, Standard Chartered Plc said in a statement.
IDRs are derivative instruments that derive their value from the shares deposited with custodians. The foreign company will deposit shares with a custodian, who will issue depository receipts based on these shares.
Retail investors whose bid amount does not exceed Rs 1,00,000, will benefit from a further 5 per cent discount on the final issue price.
Allotment of the IDRs is scheduled to be completed by June 7, 2010, with listing on the Bombay Stock Exchange and the National Stock Exchange shortly thereafter, it said.
Ten IDRs will represent one underlying share of the bank and the new shares issued in aggregate would constitute 1.16 per cent of the post-issue paid-up capital of the company, it said.
The bank opened its first branch in India in 1958 and the country accounted for 20 per cent of StanChart's profit before tax (PBT) in the 2009 calender year. The bank's global PBT was $5.5 billion in 2009, of which India contributed $1.06 billion.
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