StanChart Allotts 36 Million IDRs
Standard Chartered, on Monday, raised $530 million by issuing 36 million Indian Depository Receipts (IDRs) to a group of cornerstone investors at Rs 104 per IDR as compared with a price range of 100-115 rupees.
The Company reported that till Thursday, the issue had seen subscription of only 26% but a string of FIIs, local mutual funds and corporates stepped in a few hours before the closure to save the day for the British bank which will raise over Rs 2,400 crore from the offering.
This is the first issue of its kind and response received was awesome. It was also difficult for domestic investors to do a comparison with StanChart and they were also cautious because of volatile global markets since the start of the week.
CLSA, Credit Suisse and Swiss Finance Corporation were also among the investors. SBI is said to have put in a bid of around Rs 100 crore, RBI around Rs 70 crore, and HDFC Bank around Rs 60 crore.
Other big names who have invested in the issue include UBS, Goldman Sachs, Fortis, Templeton, Reliance Industries, the Tata group, Adani, Videocon, Bank of India, Bank of Baroda, Union Bank, Deutsche Bank and Citi. However, Insurance companies stayed away from the issue because of investment regulations.
Standard Chartered will list the IDRs on the local stock exchanges on June 11.