StanChart to raise up to $588 mn in IDRs

Standard Chartered will raise up to $588 million in an India share sale to be launched on Tuesday.

Standard Chartered will raise up to $588 million in an India share sale to be launched on Tuesday,less than an earlier target of as much as $750 million,based on pricing details the bank announced on Sunday.

The emerging markets-focused British bank said it fixed the price band for its sale of Indian Depositary Receipts (IDRs) at 100-115 rupees per share. Standard Chartered said it will give an additional five per cent discount to retail investors for its IDRs,which are the first by any issuer.

In late March,StanChart said it aimed to raise at least $500 million and not more than $750 million in its IDR sale. Since then,London-listed shares in the lender have fallen nearly 9 per cent amid a broader global selloff.

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The offer to sell 240 million shares will open on Tuesday and close on Friday. Allotment of the IDRs will be completed by June 7,with listing on the Bombay Stock Exchange and the National Stock Exchange of India shortly thereafter.

Ten IDRs will represent one share of the bank,and the new shares would constitute 1.16 per cent of the post-issue paid-up capital of the bank,it said.

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 bank has hired UBS AG,Goldman Sachs,JM Financial Consultants,Bank of America-Merrill Lynch,Kotak Mahindra Capital and SBI Capital Markets to manage the offering.

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StanChart has appointed its SBI Capital Markets unit as a joint-book running lead manager.

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The theft prompted an immediate shutdown of the Louvre museum in Paris. (Pixabay)

Louvre Museum in Paris shut after thieves armed with chainsaws loot Napoleon-era jewels

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