Standard Chartered aims for £406m from India share sale
STANDARD Chartered plans to raise up to $588m (£406.4m) in an India share sale to be launched tomorrow.
The figure is far below the initial target of as much as $750m.
London-based StanChart, which is also listed in Hong Kong, intends to use the IDR issue to raise its profile in its second-largest market.
The terms of the deal states that ten IDRs are equivalent to one share. It will allow Indian nationals, who are barred from owning shares in foreign companies, to invest in Standard Chartered. The firm says the exercise is as much about promoting the brand in the emerging economy as raising capital.
The offer to sell 240m shares will close on Friday. Allotment of the IDRs will be completed by 7 June, with listing on the Bombay Stock Exchange and the National Stock Exchange of India shortly thereafter.
It is also a sign to the Indian authorities of the bank’s long term intent, after it reaped more than $1bn profit there last year.
The bank has hired UBS, Goldman Sachs, JM Financial Consultants, Bank of America-Merrill Lynch, Kotak Mahindra Capital and SBI Capital Markets to manage the offering.