StanChart not concerned about euro impact on IDR

Standard Chartered Plc, which will launch the first-ever Indian Depository Receipt (IDR) offer later this month, today said it was “not overtly concerned” about the impact of the euro zone crisis on the issue.

The offer is slated to open on May 25 and close on May 28, and is expected to raise Rs 2,400-2,700 crore.

Since the price band will directly depend on the closing price of the bank’s shares on the London Stock Exchange on May 21 (Friday), fluctuations in British exchanges due to developments in mainland Europe could be of consequence.

However, the bank’s Chief Executive (India and South Asia), Neeraj Swaroop, said although from a process point of view the closing price of May 21 was important, “market prices are difficult to control and predict.”

“As management, we are not overtly concerned about stock prices,” he added.

Standard Chartered, which is undertaking the country’s maiden IDR offer after two years of negotiations with policy makers and market regulators, has said that it views the listing as a strategic move to reinforce market visibility and presence in its second-largest revenue earning geography.

While the bank’s global profit before tax was $5.5 billion last year, India contributed $1.06 billion, just $2 billion less than the bank’s Hong Kong operations.

“We want to grow our brand profile (in India) to push retail and wholesale offerings,” Swaroop said.

The bank intended to add 200 ATMs to its network by the end of this year, he said.

At the end of 2009, Standard Chartered was operating 257 ATMs in the country, apart from 94 branches in 34 cities.