Standard Chartered raises 530 million dollars in India sale

30th May 2010, Comments 0 comments

British bank Standard Chartered on Sunday said it had raised 530 million dollars through a first-of-a-kind sale of shares in India.

The lender, which makes most of its profits in Asia, will issue 240 million Indian Depository Receipts (IDRs) at a price of 104 rupees each, the bank said in a statement.

The bank's offering, which closed Friday, was more than twice oversubscribed, with interest coming from institutional investors and "high-net worth individuals".

Foreign companies are not allowed to list shares directly in India and Standard Chartered, which makes most of its profits in Asia, is the first foreign company to list in the country through the IDR route.

IDRs are rupee-denominated certificates similar to US Depository Receipts that show ownership of shares in an overseas firm, with every 10 IDRs representing one Standard Chartered share.

Allotment of the shares is expected on or around June 7, the bank said.

The IDRs are expected to be listed at the Bombay Stock Exchange Limited and National Stock Exchange of India Limited by June 11.

"The response to the offer has been excellent. We have achieved this against a background of significant equity market volatility," said Richard Meddings, Standard Chartered bank's group finance director.

India is the bank's second largest and fastest-growing market after Hong Kong, with profit in excess of one billion dollars in 2009.

Standard Chartered is the largest international bank in India, where it has had a presence for 152 years. the bank now operates 94 branches in India with a staff of 17,500 people.

© 2010 AFP

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