Standard Chartered completes Indian fundraising
by Gill Montia
Story link: Standard Chartered completes Indian fundraising
Standard Chartered has raised £366 million from a public share offering in India, which was the first of its kind.
The emerging markets bank sold 240 million Indian Depositary Receipts (IDRs) at 104 rupees, in an offering that was heavily oversubscribed.
IDRs provide an opportunity for Indian investors to own an interest in foreign companies paid for in Indian rupees and the move will allow the company to enhanced local branding and target business opportunities in the country.
It gives access to the Indian capital pool and creates opportunities for future fund raising, possibly for any acquisition in India which otherwise would have to be paid for in cash.
Last month, Standard Chartered reported a “very strong” start to 2010.
In a trading update that lacked any figures, the bank reported that income and profit for the first three months of 2010 were ahead of a year earlier, with consumer banking making a larger contribution to both.
Client income in wholesale banking rose sharply and the asset quality of the bank’s corporate loan book remained “good”, with no material new impairments charged in the first quarter.
The bank described itself as in “excellent shape” being well capitalised and with a firm grip of risks and costs.