Standard Chartered Bank PLC’s IDR listed on the BSE and NSE on Friday. The share listed at Rs 105 on the BSE and Rs 106 on the NSE, The highs and lows were Rs 108 and Rs 100.6 on the BSE, while they were at Rs 106.40 and Rs 100.20 on the NSE respectively. This was India’s first IDR and also the first issue under the new guidelines where QIB’s paid 100% of the funds and the listing time was cut short to 12 days.
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Trading began on a brisk note and in the first 90 minutes of trade we had close to 2.2 cr shares traded. Thereafter the pace of trade slowed down and the total traded quantity at the end of the day was 4.17 cr, indicating that in the remaining 5 hours of trade the total traded quantity failed to even double. The stock was under pressure and hovered around the issue price of Rs 104. The weighted average on the BSE was just below the issue price at Rs 103.98 while on the NSE it was Rs 104.48. The closing prices were at a discount with Rs 103.05 on the BSE and Rs 103.45 on the NSE.
There was quite some institutional activity in the counter on day one. On the buy side we had foreign institutions like Deutsche Securities, Morgan Stanley, Royal Bank of Scotland and ABN Amro Bank buying on the counter. The total purchases of all these entities was 152.35 lakh IDR’s. On the sell side we had HDFC Bank and DB International who were sellers and they sold between themselves 119.29 lakh IDR’s. The net institutional purchase was a mere 33.06 lakhs or just 13.26% of the total delivery.
The total traded quantity was 4.17 cr which was 17.37% of the issue size of 24 cr IDR’s. The delivery in quantity terms was 249.20 lakhs with a delivery percentage of 59.75%. In percentage terms to the issue size this delivery is 10.38%. The share is under pressure and with retail investors making a profit of the entire discount of 5% which was offered to them and some more we are likely to see some selling pressure going forward.
The IDR listing was successful from the retail perspective but hardly beneficial from the HNI or Institutional perspective. Going forward the price of the IDR will be dependent on the pound rupee rate and the stock price of Standard Chartered Bank on the London Exchange.
After close of trade in India, the Standard Chartered Bank PLC share on the London Stock Exchange closed weak and was down 2.03% for the day. This and the fact that we did see selling pressure towards the second half of trading could negatively impact the price on Monday.