British banking major Standard Chartered's Indian depository receipts today listed on the BSE with a premium of nearly one per cent at Rs 105. After a firm opening on the Bombay Stock Exchange, the country's first-ever Indian depository receipt climbed nearly four per cent to a high of Rs 108.
The IDR was trading at Rs 105.10, up 1.05 per cent, at 0956 hrs. "The Standard Chartered IDR had seen trouble during the initial response.
"The stock will see some correction even at current levels, but in the long-term it will be a trend setter for other global companies looking at tapping emerging markets like India," CNI Research CMD Kishore P Ostwal said.
On the National Stock Exchange, the stock opened up nearly 2 per cent, at Rs 106. IDRs represents ownership in shares of a foreign firm, which trades in domestic capital market.
An IDR is bought and sold just like a regular stock. Ten StanChart IDRs represent one underlying share of the British parent company.
This is StanChart's third listing after London and Hong Kong. India's maiden IDR issue has raised Rs 2,490 crore from 24 crore receipts.
The IDR issue by the lending major was subscribed 2.2 times, though initial response was not very enthusiastic both from institutions and retail investors.
StanChart is focusing on developing its wholesale and consumer banking business in Asia, Africa and West Asia, from where it derives 90 per cent of its operating income and profits. India is the second largest profit centre for the bank after Hong Kong. Globally, it has around 1,700 branches spanning 71 countries.
