Bidders commit to Standard Chartered stock offer on final day

28 May 2010

A final-day rush from investors meant Standard Chartered's share sale in India was oversubscribed.

At the start of the day (May 28th 2010), only 11 per cent of the 240 million Indian Depositary Receipts (IDRs) on offer had received bids.

However, investors poured in to ensure orders for more than 260 million IDRs were received by the time the sale came to a close, reports Bloomberg.

Under new rules, Indian and overseas funds have to pay the full amount at the time they make a bid, so to avoid tying up capital many waited until the last hours to make their move.

Alagappan Murugappan, head of investment banking at ICICI Securities, said: "From now on, we are likely to see share sales get subscribed only on the last day of the offer because of the new regulations on bid payments."

Earlier this month, Peter Sands, group chief executive for Standard Chartered, said the stock offering was a good opportunity for Indian investors to "participate in our growth" in the country.

By Tony Aynsley

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