SEBI clears StanChart's IDR, issue to open by May-end

NEW DELHI: Market regulator SEBI has cleared Standard Chartered Bank's proposed Indian Depository Receipt ( IDR) issue, which will help the UK-based lender raise USD 1 billion (about Rs 4,500 crore) from the domestic capital market.

StanChart's IDR, the first issue of its kind, is likely to open for public subscription by the end of the month.

Like American or Global Depository Receipts, where Indian companies raise resources overseas, IDRs enable foreign companies to do the same in India.

UK-based StanChart Plc's IDR has got clearance from SEBI and now needs approval from the Registrar of Companies, market sources said.

The IDR issue is likely to hit the market towards the end of this month and listing is expected in June, sources said.

When contacted, StanChart's spokesperson declined to comment on the proposed IDR issue.

However, sources said the roadshow for the issue is expected to begin from this week.

Earlier this month at an Annual General Meeting, company shareholders approved plans to allot shares in connection with a planned India listing.

In November last year, StanChart Global CEO Peter Sands said the proposed IDR issue would enhance the lender's commitment to the local market.

StanChart, which has been operating in India for 150 years, has over 94 branches in 37 cities of the country and a combined customer base of around 20 lakh retail customers, among others.

The bank has operations in an array of verticals, including consumer and wholesale banking, private banking and SME banking.

Standard Chartered is currently listed in London and Hong Kong.

As per capital market regulator SEBI's guidelines, IDRs can be issued by companies that have been listed in the home market for a minimum of three years and have registered a profit in at least three of the five years before the issue.

As per the norms, no individual or an entity or group of entities, other than QIBs, can hold IDRs exceeding 5 per cent of the issue. QIBs, or a group of QIBs, can hold up to 15 per cent of the IDR issue.