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StanChart says IDR plan on the table

BS Reporter  |  Mumbai 

Standard Chartered Bank, India’s second-largest foreign lender by assets, said it continued to evaluate the option of listing in India.

The lender was planning to raise around Rs 5,000 crore through an Indian Depository Receipt (IDR) issue and has appointed JM Financial and UBS AG as the lead managers for what could be the first IDR issue by a global player.

Goldman Sachs, Bank of America and Kotak Mahindra are the other banks appointed to manage the issue.

A StanChart spokesperson said, “As a group, Standard Chartered evaluates opportunities in various markets. This includes listing in key markets. We are already listed in Hong Kong, our largest market, and London, our headquarters. We have stated that we are evaluating the option of listing in India, which is one of our key markets.”

Like American or Global Depository Receipts, where Indian companies raise resources overseas, IDRs enable foreign companies to do the same from India.

The foreign company will deposit shares with a custodian, who will issue depository receipts based on these shares. The receipts are based on the ratio of how many shares equal a depository receipt.

First Published: Thu, August 06 2009. 00:05 IST