Standard Chartered Bank IDR subscribed

Standard Chartered Bank PLC which had tapped the markets with India’s first ever IDR issue was fully subscribed. The issue had opened on Tuesday the 25th of May and closed on Friday the 28th of May. The price band for the issue was Rs 100-115 and retail investors are to be given a discount of 5% to the issue price. The issue was for a total of 24 cr IDR’s and a total of 3.6 cr IDR’s were subscribed by anchor investors. The anchor investors had subscribed at a price of 104 per IDR. The issue will be priced at Rs 104 seeing the way the book had been built.

The details of the issue subscription are given below.

Category Shares offered Shares Bid Subscription Ratio
QIB 84000000 348394400 4.1476
NII 43200000 82150400 1.9016
Retail 72000000 18210200 0.2529
Employee 4800000 950000 0.1979
TOTAL 20400000 449705000 2.20

Each IDR represents 1/10th of a share. The closing price of the share on the London stock exchange was GBP 16.37 which corresponds at an exchange rate of 67.5695 to Rs 1106.11 or 110.61 per IDR. There is at the expected price to be declared of Rs 104 a discount of approximately 5.97%. Retail investors will enjoy a further 5% discount making it a discount of 10.68% to the closing price on the LSE as of Friday the 28th May.

It may also be mentioned that this is the first issue under the new guidelines laid down by SEBI for QIB’s putting in 100% of the bid amount and also for listing within 12 days. It is expected that this issue will list by 15th or 16th of June.

Considering the extreme volatility which has been seen in world markets, this is an excellent performance and augurs well for the introduction of IDR’s in India. We should see more such issues in the near future.

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