Stan Chart first to list in India
STANDARD Chartered yesterday become the first foreign company to list in India.
It hopes to raise around £500m through an Indian Depositary Receipts (IDR) scheme – the equivalent of a listing. The terms of the deal states that 10 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.
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.
Standard Chartered, which is expanding its presence across Asia, is also listed in Hong Kong. It earned more than three quarters of its $5bn profit in Asia last year.
The bank has hired Goldman Sachs, DSP Merrill Lynch, Kotak Mahindra Capital and SBI Capital Markets to manage the offering.