Standard Chartered Bank has plans to offer a maximum of 30% of its Indian Depository Receipts (IDR) to the anchor investors. On Wednesday, Neeraj Swaroop, chief executive officer for India at Standard Chartered, said the bank will raise Rs 2,400-2,500 crore through an issue of 240 million IDRs on the basis of current share price on London Stock Exchange.

The IDR issue will open for subscription on May 25 and will close on May 28. The bank will provide a 2% discount to its employees, said sources close to the development.

?The anchor investors consisting of qualified institutional buyers (QIB) and other investors can get up to 30% of the total QIBs. The issue will be opened for anchor investor on Monday,? said a source close to the development.

With $ 36 billion capital, the capital adequacy ratio of the bank in its global operations stands at 16.5%.

Speaking to FE, Richard Meddings, group finance director of the bank, said the bank is bullish on Indian markets and currently provides a full range of products. At present, India is the second largest profit-making market for the bank.

?Indian operations of the bank is well capitalised and the IDR is not meant to meet capital requirement of the bank. The IDR is more a brand awareness exercise. I hope it inspires other foreign entities to list in Indian,? he said.

?Overseas investors who are interested to use the Standard Chartered platform to enter the Indian markets are looking at entering sectors like coal mining, jewellery and construction,?? he added.

According to a report released by Credit Suisse, retail interest will be dampened by the higher taxation on dividend and capital gains on IDRs compared with that on local stocks.

With little appeal to the primary investors, like insurers and foreigners who own 60-80% of free float in Indian banks, IDR trading multiples are likely to be at a discount to Indian banks, the report added.

?Foreign interest in these instruments would be limited, given lower liquidity and that domestic insurers are not allowed to own IDRs? the report pointed out.