India SCB starts selling shares
Wednesday, 26 May 2010
MUMBAI, May 25 (AFP): Britain's Standard Chartered Bank (SCB) began selling shares in India Tuesday, hoping to raise up to US$588 million in the first initiative of its kind in the country by a foreign firm.
The London-based lender is selling shares through Indian Depository Receipts (IDRs) -- rupee-denominated certificates similar to US Depository Receipts that show ownership of shares in an overseas firm.
The price band for the offering is 100 to 115 rupees per IDR.
Buyers of the certificates can earn bonuses or dividends.
Standard Chartered, a bank that makes most of its profits in Asia, will issue 240 million IDRs through the offer, which is open for subscription to retail, institutional and overseas investors and corporate houses. The process ends Friday.
Banking analysts expect a strong response for the offering. Standard Chartered Bank, which has revenue streams across emerging markets such as India, Africa, the Middle East and Southeast Asia.
"This issue offers Indian investors a chance to invest in a global entity with widespread global presence," said an analyst with brokerage Sharekhan.
Standard Chartered, analysts say, is better positioned than other global banks in a tough economic climate, as a majority of its business comes from high-growth emerging markets.
"The bank could deliver decent returns to investors in the long-term, looking at its past track record and future growth prospects," said analyst Tiju Samuel of private sector HDFC Securities.
The London-based lender is selling shares through Indian Depository Receipts (IDRs) -- rupee-denominated certificates similar to US Depository Receipts that show ownership of shares in an overseas firm.
The price band for the offering is 100 to 115 rupees per IDR.
Buyers of the certificates can earn bonuses or dividends.
Standard Chartered, a bank that makes most of its profits in Asia, will issue 240 million IDRs through the offer, which is open for subscription to retail, institutional and overseas investors and corporate houses. The process ends Friday.
Banking analysts expect a strong response for the offering. Standard Chartered Bank, which has revenue streams across emerging markets such as India, Africa, the Middle East and Southeast Asia.
"This issue offers Indian investors a chance to invest in a global entity with widespread global presence," said an analyst with brokerage Sharekhan.
Standard Chartered, analysts say, is better positioned than other global banks in a tough economic climate, as a majority of its business comes from high-growth emerging markets.
"The bank could deliver decent returns to investors in the long-term, looking at its past track record and future growth prospects," said analyst Tiju Samuel of private sector HDFC Securities.