New Delhi: Standard Chartered, the UK lender that makes at least three quarters of its profit in Asia, raised about Rs24.9 billion (Dh1.94 billion) from the sale of shares in India, the lower end of the proposed offering.
The shares, which were offered to investors for between Rs100 and Rs115 each last week, were sold for Rs104 apiece, the bank said in an e-mailed statement yesterday. Standard Chartered sought to raise as much as $750 million (Dh2.75 billion), finance director Richard Meddings said on May 13.
The sale, which makes the London-based bank the first company to issue Indian depository receipts, was completed in the final hours of a four-day offer period as investors delayed their bids to avoid tying up capital under a rule that went into effect this month in India.
The lender received orders for 2.2 times the 204 million shares on offer as bourses closed on May 28, according to data from the National and Bombay stock exchanges. It agreed to sell an additional 36 million Indian depository receipts to so-called anchor investors earlier in the week at Rs104 each.
The IDRs will begin trading on the Indian exchanges by June 11, the bank said yesterday. Standard Chartered, which is listed in Hong Kong and London, fell 2.7 per cent to 1,637 pence on May 28 in the UK. In Hong Kong, the stock rose 1.2 per cent to HK$185.50.
Ten IDRs will represent one share of Standard Chartered.
The bank began the final day of its India sale with bids for 11 per cent of the stock on offer.
Indian and overseas funds are required to pay the full amount at the time of making their bid under a rule that came into effect this month, leading investors to delay the date of their offer to buy shares. Domestic insurers are also prohibited from taking part in the sale, limiting the number of buyers.
UBS, Goldman Sachs Group, JM Financial Services, Bank of America's Merrill Lynch, Kotak Mahindra Capital, SBI Capital Markets and Standard Chartered-STCI Capital Markets are managing the sale.
