Standard Chartered to issue 240 m Indian Depository Receipt (IDR) which will open on 25 May 2010 and close on 28 May 2010. 10 IDRs represent one share of Standard Chartered Plc.
StanChart's IDR is the first issue of its kind in India.What are these IDRs? Like American or Global Depository Receipts, where Indian companies raise resources overseas, IDRs enable foreign companies to do the same in India.
StanChart has been operating in India for over 150 years and has over 90 branches. It has a combined customer base of around 20 lakh and the bank has operations in consumer banking, as well as private banking.
Standard Chartered is listed in London and Hong Kong stock exchanges. The price of the IDR is yet to be announced, couple of days before the issue and 5% discount is offered to retail investors. Currently Stanchart trades at 15 times current year earnings and any price of 5-10% below from current levels would be a good price to apply.
The price band is Rs.100-115, and the IDRs would be listed in NSE,BSE. At the lower end of the price band, the IDR would trade at 15 times current year earnings and it is compares favourably with private banks like ICICI Bank and HDFC Bank.
The risk factor being the currency, if Rupee appreciates IDR value will be affected.
One can apply for the issue for medium to long term and listing gains may not be substantial.
Get Connected
Popular Posts
-
Benefits Of The 1031 Tax Exchange For Property Investors https://flic.kr/p/iQok7n If you’re a property investor - or are consid...
-
Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers....
-
The Nifty India Manufacturing Index includes companies from the Nifty 100, Nifty Midcap 150 and Nifty Smallcap 50 Index from eligible basic...
-
Google has launched a contest to solicit ideas about how to help humanity - Google Project 10tothe100 . "To mark our 10th birthday an...
-
200 DMA or the 200 Day Moving Average, is an important indicator in technical analysis. The 200 DMA is a long term moving average that helps...