Standard Chartered on Sunday said it has fixed the price band for its proposed issue of 240,000,000 Indian Depository Receipts (IDRs) at between Rs 100-115 per IDR.
The issue, which will remain openfrom May 25 to May 28, will?raise up to $588 million. The bank has revised the target, which was earlier set at $750 million. Retail investors and eligible employees subscribing to the IDRs under the retail and the employee portion respectively, and whose bid amount does not exceed Rs1,00,000, will benefit from a further 5% discount to the final issue price, a bank statement said.
Allotment of the IDRs is scheduled to be completed by June 7, with listing on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) shortly thereafter.
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% amid a broader global selloff. Ten IDRs will represent one underlying share of the company, and the new shares issued in aggregate would constitute 1.16 %? of its post-issue paid up capital,the statement said.
“The issue of IDRs is a more brand-building exercise than capital mop up,” the bank said. Capital Markets Ltd has been named as the co-book-running lead manager (co-BRLM). The Co-BRLM will only be involved in the marketing of the issue, the statement said.
