Despite roping in leading domestic mutual funds as anchor investors, the Standard Chartered IDR issue received poor response from investors on the first day of subscription. The issue was subscribed just 0.05 times (5%) on Tuesday (excluding the subscription made by anchor investors). While the anchor investors subscribed to 3.6 crore Indian Depository Receipts (IDRs) a day before, Tuesday?s bids were received for another 1.11 crore IDR. In all, IDR issue has been subscribed to the extent of 20% till date.
The QIB portion, which is 50% of the offer size, was subscribed 0.12 times with maximum number of bids coming from domestic financial institutions. Interestingly, not a single bid has come from overseas investors in the QIB category. The 30% portion reserved for retail investors was subscribed only 0.01 times. The company had offered a 5% discount to retail investors on the issue price which will be finalised through the book building process.
On Monday, the company had raised over Rs 370 crore by roping in six anchor investors that have subscribed for 3.6 crore IDRs or 15% of the issue size. The anchor investors have subscribed for the IDRs at a price of Rs 104 per depository receipt. The company had fixed the price band for the issue in the range of Rs 100 ? Rs 115 per IDR hoping to raise up to Rs 2,760 crore at the upper end of the price band. The issue closes on May 28, 2010.
The bank said allotment of the IDRs is scheduled to be completed by June 7, with listing on the BSE and the NSE shortly thereafter. Ten IDRs will represent one underlying share of the British lender.
Standard Chartered Bank is the country’s largest and the oldest foreign bank.
