Standard Chartered generates $537m with Indian share offering

1 June 2010

The historic sale of shares in India by Standard Chartered has raised $537 million for the British bank.

In the first initiative of its kind, the company made shares available through a method known as Indian Depository Receipts (IDRs), which allow foreign firms to raise capital in the country.

Standard Chartered sold 240 million IDRs at a price of 104 rupees (£1.55) each, with group finance director Richard Meddings describing the response from investors as "excellent".

"We have achieved a book that is well over two times covered against a background of significant equity market volatility," he commented.

The IDRs are due to be listed on the Bombay Stock Exchange and the National Stock Exchange of India by June 11th.

Announcing the share offering on May 13th, group chief executive Peter Sands said it would "grow our market visibility and brand presence in one of our largest markets", while allowing Indian investors to participate in the expansion.

Standard Chartered established its presence in India more than 150 years ago and is the country's biggest international bank.

By Gary Cooper

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