Standard Chartered Plc's Rs 2,760-crore (Rs 27.60 billion) maiden Indian depository receipt (IDR) issue got a robust demand from investors on the final day of the offer on Friday and got subscribed a good 2.19 times with most of the bids coming in from qualified institutional buyers (QIBs).
The offer, which is the country's first-ever IDR issue, received total demand for 44.68 crore (446.8 million) receipts against 20.4 crore (204 million) units on offer, thereby getting subscribed 2.19 times, according to the data available with the NSE till 1700 hrs.
While the final category-wise break-up of subscription is yet to be updated, banking sources said among the portion reserved for the QIBs, the issue got subscribed a whopping 4.15 times. Sources also said in the high networth individual (HNI) category, the issue was subscribed 1.9 times.
Counting for the bids in the retail category is still on, banking sources added.
The British lending major has come out with a public offer of 24 crore (240 million) IDRs, which include 3.6 crore (36 million) receipts reserved for anchor investors. The banking major has already raised Rs 374 crore (Rs 3.74 billion) through anchor investors.
In the first three days of the offer, the issue was not able to generate demand among investors. However, Friday being the last day, the issue saw huge participation. The offer was subscribed just 11 per cent during the first three days.
Opened on May 25, the IDR is priced in the range of Rs 100-115 apiece. At the upper price-band, the country's oldest foreign bank would be able to mop up Rs 2,760 crore.
An IDR represents ownership in shares of a foreign company that trades in the domestic capital market. An IDR is bought and sold just like a regular stock.
Ten StanChart IDRs represent one underlying share of the British company. The bank is giving a special 5 per cent discount to retail investors and employees.
Standard Chartered Bank is the country's largest and the oldest foreign bank. It opened its first branch in April, 1858 in Calcutta and India accounted for over 20 per cent of the bank's profit before tax in the 2009 calendar year.
On the London Stock Exchange, the StanChart counter was trading at 16.56 pounds, down 1.55 per cent from Thursday's close, at mid-session.
