STANDARD Chartered yesterday launched a share sale to raise up to $588m (£410.3m) from investors in India, a country where the bank is on a mission to bolster its presence.
The emerging markets-focused bank opened its four-day sale of 240m Indian Depositary Receipts (IDRs) – a derivative instrument with Standard Chartered shares as its underlying asset – in a price band of 100–115 rupees (£1.47–£1.69) per share.
After the issue closes on Friday, the IDRs are set to be listed on the Bombay Stock Exchange and the National Stock Exchange of India in June.
The move is set to boost London-based Standard Chartered’s profile in India, its second-largest market after Hong Kong.
It marks the first time a foreign company has issued IDRs to raise funds in the country.
In late March, Standard Chartered said it aimed to raise at least $500m and not more than $750m in its IDR sale. Since then, London-listed shares in the lender have fallen nearly nine per cent amid a broader global selloff.
The stock fell 3.34 per cent to 1,578.5p on the LSE yesterday during a tumultuous day for the markets.