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Tuesday, March 30, 2010

Standard Chartered to list Indian Depository Receipts in India

Standard Chartered PLC considering to issue and list Indian Depository Receipts in India, making it the first overseas company to do so there.

It said on its website on Tuesday, March 30 the IDRs represent underlying new ordinary shares in the banking group.

Standard Chartered, which is also listed in Hong Kong, said it had filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India. The listing of IDRs is subject to market conditions and further regulatory approvals.

Standard Chartered group chief executive Peter Sands, commenting on the public filing of the DRHP, said: “Our intention to be the first company to list IDRs demonstrates how important India is to Standard Chartered.

"India is one of our largest and fastest-growing markets and achieved over USD1 billion in profits in 2009. We have a 150-year heritage in India. This is a unique opportunity to raise our profile and allow investors in India to participate in our future."

On the rationale for the IDR issue, it said the banking group had demonstrated a consistent track record of sustained financial performance across our markets in Asia, Africa and the Middle East.

"2009 was the seventh consecutive year of record income and profit, delivering compound annual growth rates of 19 per cent in income and 22 per cent in profit over that period. The company’s significant operations in the Asia region accounted for over 75% of its US$5.15 billion total profit before taxation for the year ended Dec 31, 2009," it said.

Standard Chartered said the listing of IDRs – expected to be the first by an overseas company - would be an unequivocal demonstration of the company’s commitment to India.

This move would facilitate a step change in market visibility and brand value in one of its key markets by significantly increasing the Company’s profile in India. India is one of Standard Chartered’s key Asian markets - generating over US$1 billion in profit.

"The listing provides Indian residents with an opportunity to invest in the company and participate in its growth," it said.

It appointed UBS Securities India Private Ltd and Goldman Sachs (India) Securities Private Ltd (as global coordinators); and JM Financial Consultants Private Limited, DSP Merrill Lynch Ltd, Kotak Mahindra Capital Co. Ltd and SBI Capital Markets Ltd as book running lead managers.

It appointed its STCI Capital Markets Ltd as a co-book running lead manager.

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