| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Tarapur Transformers | 75 | 2 to 3 |
| Mandhana Industries Ltd. | 130 | 5 to 6 |
| Tara Health Foods | 180 to 190 | Withdraw |
| Sutlaj Jal Vidhut Nigam (SJVNL) | 26 | 3 to 3.25 |
| Jaypee Infra | 102 | Discount |
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Friday, May 14, 2010
Grey Market Premiums - May 14 2010
Market may snap last two days' gains on weak global stocks; inflation data eyed
The market may snap last two days' gains on weak global stocks. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicate that the Nifty could fall 10.50 points at the opening bell. Meanwhile, the government will unveil data on inflation based on the wholesale prices for the month of April 2010 at 12:00 IST today, 14 May 2010. The headline inflation was 9.9% in March 2010. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
Infrastructure stocks may edge higher on reports the government plans to launch a Rs 50000 crore fund to build infrastructure, with 40% of the corpus from overseas investors. The government proposes to raise Rs 20000 crore from overseas pension, insurance and sovereign wealth funds and the remainder from domestic institutions, reports suggest.
Asian stocks fell on Friday, surrendering part of the prior session's rally, as investors remained skittish in the face of euro zone debt worries and doubts about the US economic recovery. The key benchmark indices in China, Hong Kong, Japan, South Kroea, Singapore and Taiwan fell by between 0.15% to 1.61%. But, Indonesia's Jakarta Composite rose 0.02%.
US stocks fell on Thursday as downbeat comments on the economy from tech company Cisco Systems Inc and retail chain Kohl's Corp cast doubt on the strength of the economic recovery. The Dow Jones Industrial Average dropped 113.96 points, or 1.05% to end at 10,782.95. The Standard & Poor's 500 Index fell 14.23 points, or 1.21% to 1,157.44. The Nasdaq Composite Index lost 30.66 points, or 1.26% to close at 2,394.36.
A report showed the number of US workers filing for jobless benefits fell only slightly last week, which failed to back up sharply improving monthly payrolls data.
Meanwhile, Portuguese leaders agreed tough austerity measures on Thursday, joining a coordinated euro zone push that has calmed market fears of a spreading debt crisis. Prime Minister Jose Socrates and opposition leader Pedro Passos Coelho drew up steps to slash Portugal's budget deficit, including 5% pay cuts for senior public sector staff and politicians, and increases of VAT sales tax, income tax and profits tax ranging from one to 2.5%.The cabinet approved the programme later. The government said it would cut the deficit to 7.3% of GDP this year and 4.6% in 2011.
On Wednesday, Spain said it will slash civil service pay and cut public-sector jobs, just a few days after EU finance ministers approved a 750 billion euro ($1 trillion) bailout package to stem the debt crisis. Markets had remained jittery in the past few days on worries a European debt crisis that began in Greece could spread around the world and potentially curb global growth.
Back home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 1622 companies rose 31.2% to Rs 45438 crore on 29.6% rise in sales to Rs 445658 crore in the quarter ended March 2010 over the quarter ended March 2009.
Among major results, DLF, State Bank of India and National Aluminum Company will announce their January-March 2010 quarter results today.
Reliance Communications and Reliance Infrastructure will announce their January-March 2010 quarter results tomorrow, 15 May 2010.
On the macro front, the latest economic data showed industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
The latest government data showed the food price index rose 16.44% in the year to 1 May 2010, higher than previous week's annual rise of 16.04%. The fuel price index rose 12.33%, lower than previous week's annual 12.69% rise. The primary articles index jumped 16.76%, from previous week's annual gain of 13.93%.
The Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, the IMD said on 23 April 2010. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season holds key.
The Reserve Bank of India expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
Reserve Bank of India governor D Subbarao on Tuesday, 11 May 2010, said India prefers long-term capital inflows to short-term flows and non-debt flows to debt flows. There is no proposal to impose a Tobin type tax to rein in excessive capital inflows, the RBI governor said in a speech delivered at a conference in Zurich on Tuesday. However, it needs reiterating that no policy instrument is clearly off the table and the choice of instruments will be determined by the context, Subbarao added.
The key benchmark indices gained for the second consecutive session on Thursday, 13 May 2010, as Asian stocks rose. The BSE 30-share Sensex rose 70.06 points or 0.41% to 17,265.87 on Thursday.
As per provisional figures on NSE, foreign funds sold shares worth Rs 15.57 crore and domestic funds bought shares worth Rs 222.40 crore on Thursday.
Crude continues to sink
Prices drop on demand concerns
Crude oil prices ended lower at Nymex on Thursday, 13 May 2010. Long-term implications of the European Union's rescue package and its impact on the currencies, specially on the euro, bothered investors and raised question about global demand for oil in coming months. The strong dollar also affected prices.
On Thursday, crude-oil futures for light sweet crude for June delivery closed at $74.4/barrel (lower by $1.25 or 1.7%). For the month of April, crude rose 2.8%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is lower by 0.9%.
Prices are very much lower as compared to 3 July, 2008 settlement of $145.29 a barrel and an intraday high of $147.27 on 11 July, 2008, an all-time high. However, oil has also gained nearly 142% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
Traders continued to remain nervous today that in the long term how much financial aid will be pledged for euro zone countries that face tenuous fiscal conditions and also the issue of how those funds will be allocated efficiently and whether recipients can remedy their underlying problems. The long-term implication of this on the euro and worries about inflation also bothered investors.
In the currency market today, the euro dropped once again against the dollar. The dollar index, which measures the strength of the dollar against a basket of six other currencies rose by 0.6%.
Among economic data for the day, The Labor Department in US reported on Thursday, 13 May 2010 that the number of people applying for unemployment benefits essentially held steady at 444,000 in the latest week.
As per the report, claims fell by 4,000 in the week ended 8 May but the data was revised up by 4,000 for the prior week to a seasonally adjusted 448,000. Initial claims have fallen just 2.2% since the beginning of the year, but they are 29% lower compared with a year ago. The four-week average of initial claims, a better gauge of employment trends than the volatile weekly number, dropped by 9,000 to 450,500.
In the latest weekly inventory report, the EIA reported yesterday an increase of 1.95 million barrels in the nation's oil inventories for last week, slightly above expectations. The biggest surprise was a decrease in gasoline inventories by 2.8 million barrels, whereas market was expecting a small increase. Stockpiles of distillates, which include diesel and heating oil, rose by 1.4 million barrels. The refinery utilization rate dropped more than expected to 88.4%. Meanwhile, inventories at Cushing, Okla., the delivery point for Nymex futures, rose by 784,000 barrels to a record high on 37 million barrels.
The International Energy Agency yesterday lowered by 220,000 barrels a day its forecast for global oil demand for 2010. Oil demand is estimated to grow from 2009 by 1.9%, equating to 1.6 million barrels a day, to 86.4 million barrels a day.
In contrast, earlier this week, the U.S. Energy Information Agency raised its outlook for global oil demand to 1.6 million barrels per day in 2010, slightly higher than the 1.5 million barrels-a-day projection made last month. Separately, The Organization of the Petroleum Exporting Countries had also said on Tuesday it was raising its estimate for global oil demand for 2010. OPEC expects global oil demand to grow by 950,000 barrels a day to 85.38 million barrels a day. It previously expected growth of 900,000 barrels a day.
Natural gas prices reversed paths to trade higher on Thursday after a government report showed a smaller-than-expected increase in natural gas in storage. Natural gas for June delivery added 6 cents, or 1.3%, to settle at $4.34 per million British thermal units. Prices earlier hovered around their highest since March, but trimmed gains as other energy products remained under pressure. Natural gas prices rose after the Energy Information Administration reported an increase of 94 billion cubic feet of natural gas in storage in the week ended 7 May.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for May delivery closed higher by Rs 21 (0.61%) at Rs 3,411/barrel. Natural gas for May delivery closed at Rs 196.6, higher by Rs 3.6 (1.86%).
Daily News Roundup - May 14 2010
Aban Offshore loses one of its biggest money-spinning rigs, earning Rs15mn a day. (ET)
RIL may join ONGC consortium in Venezuela, which could bag a hydrocarbon block. (ET)
Standard Chartered is likely to raise around US$600mn through an India listing. (ET)
Huawei offers to share source code for its telecommunication systems in a move to establish that its telecom gear does not pose security threat. (ET)
RJ Corp will dilute 10-12% in one of its subsidiaries to fund expansion plans. (ER)
Kingfisher to restructure around Rs7bn of debt. (ET)
Coal India about US$555mn in employee cost over the next 10years as it increases the use of machines. (ET)
REC plans to borrow Rs21bn as a part of its resource mobilization plans. (ET)
UK’s National Grid has shortlisted Infosys, Mahindra Satyam, Cognizant ifor US$250mn outsourcing contract. (ET)
The Government plans to raise US$11bn for the nations infrastructure, 40% of the corpus cold be raised from foreign pension, insurance and sovereign investors. (ET)
Food inflation rises to 16.44% in the week ending May 14, 2010. (ET)
RBI to give priority sector status to loans for projects that emit lower carbon. (ET)
SEBI may close equity options route for mutual funds. (ET)
In a move to bring greater transparency, banks may now have to list securitized debt. (ET)
via BL
Prosperity from Austerity!
There is no austerity equal to a balanced mind, and there is no happiness equal to contentment. - Chanakya.
There may be no prosperity at start on the Street as global cues are not supportive. After Spain, now Portugal has announced tough austerity steps to qualify for funds from the massive safety net provided by the EU and IMF. Optimism that the eurozone debt crisis is abating got a lift from a successful bond auction in Italy. Still, the euro fell close to 14-month lows against the dollar. Risk aversion remains elevated with the dollar index climbing above 85. Commodities are under pressure though Gold continues to attract safe haven buying. US stocks erased Wednesday’s big gains amid reports of a widening probe of large Wall Street banks. Asian markets are mostly in red this morning.
It’s a no-brainer that Indian stocks too would fall in sync with the global trend. However, the fall may not be too severe and sentiment could change for the better provided there is no further bad news from the external front. Key indices might also benefit if inflation for April turns out to be lower than anticipated. Consensus is for a drop to ~9.5% from 9.9% in March.
Results Today: Adani Enterprises, Asahi India, Bhushan Steel, Deccan Chronicle, DLF, Federal Bank, Gulf Oil, Hindustan Copper, ICI India, Kirloskar Oil, McNally Bharat, NALCO, SBI, Tanla and Videocon Industries.
FIIs were net sellers of Rs155.7mn in the cash segment on Thursday on a provisional basis, according to NSE web site. Local institutions were net buyers of Rs2.22bn. In the F&O segment, the foreign funds were net buyers of Rs18.63bn. FIIs were net sellers of Rs1.66bn in the cash segment on Wednesday, as per the SEBI data. Mutual Funds were net sellers of Rs1.28bn in the cash segment on the same day.
US stocks ended lower on Thursday, with the Dow Jones Industrial Average reversing the triple-digit gains of the previous day, as investors mulled disappointing results from Kohl's Corp. and Urban Outfitters.
The dollar strengthened versus the euro, dragging down dollar-traded oil, gold prices and stocks.
After meandering up and down, the major indexes dropped decisively in the final hour of trading. Trading volume hasn't been as strong as it was during last week's shakeout, with investors still wary.
The Dow lost 114 points, or 1%, to 10,782.95. The S&P 500 index shed 14 points, or 1.2%, to 1,157.44 and the Nasdaq Composite dropped 30 points, or 1.3%, to 2,394.36.
The consumer discretionary sector tumbled, led by a 6.7% drop in Urban Outfitters shares and a 6.6% decline in Office Depot shares. Shares of Kohl's fell 5.8%.
The government reports April retail sales figures on Friday morning.
The dollar gained 0.6% versus the euro and fell 0.6% against the yen. The euro remains at a 14-month low versus the dollar.
US light crude oil for June delivery fell $1.25 to settle at $74.40 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery lost $13.90 to settle at $1,229.20 after settling at a record high of $1243.10 Wednesday.
Treasury prices rose, pushing the yield on the 10-year note down to 3.56% from 3.57% late on Wednesday.
In the day's significant economic report, the Labor Department said that approximately 444,000 Americans filed new claims for unemployment last week, the lowest number since late March. Claims stood at a revised 448,000 the previous week. Economists had expected claims to fall to 440,000.
It was the fourth consecutive week of declining claims, but the improvement hasn't been sufficient to drive real job growth.
Continuing claims, a measure of Americans who have been receiving benefits for a week or more, rose to 4,627,000 from 4,615,000 the previous week. Economists expected 4,570,000 on average.
Meanwhile, media reports suggested that some of the financial industry's leading lights are facing investigations at both the federal and state level, as inquiries into the events that contributed to the crisis accelerate.
The Wall Street Journal cited a source that said that the Securities and Exchange Commission (SEC) has sent civil subpoenas to JPMorgan Chase, Citigroup, Deutsche Bank and UBS.
New York Attorney General Andrew Cuomo's office confirmed reports that it is investigating whether many of the same firms provided misleading information to credit rating agencies like Standard & Poor's, Moody's Corp. and Fitch.
In addition to UBS and Deutsche Bank, Cuomo is looking at Goldman Sachs, Morgan Stanley, Credit Suisse, Citigroup, Credit Agricole and Merrill Lynch, which has since been bought by Bank of America.
Bank stocks as a whole were modestly lower, with the KBW Bank index off 0.3%.
Apple and online auctioneer eBay both gained after reportedly receiving upgrades from Morgan Stanley.
But Cisco Systems shares fell 4% even after the company reported higher sales and earnings that beat estimates during what its chief executive called the company's "best quarter" ever.
Cisco weighed the most on the Dow, its shares sliding 4.5% after cautious words about the business climate from Chief Executive John Chambers.
Shares of Sybase rose 14% after German software giant SAP AG said late on Wednesday that it would pay $65 a share, or $5.8 billion in cash, for the maker of database software.
European shares advanced marginally, as strong earnings from telecom carrier BT Group and private-equity firm 3i Group offset persistent worries about sovereign-debt problems in the euro-zone. The Stoxx Europe 600 index rose 0.2% to close at 257.24.
The major regional indexes ended mixed. The German DAX index settled 1.1% higher at 6,251.97 and the UK's FTSE 100 index rose 0.9% to close at 5,433.73, while the French CAC-40 index eased 0.1% to 3,731.54.
But, the euro fell 0.4% to $1.2582 against the dollar, and banks were also lower.
German technology consulting giant SAP shares lost 1.1% after it said it has agreed to buy California-based Sybase for roughly $5.8 billion.
Shares of 3i Group rallied 7.6% after the company swung to a fiscal-year profit of 154 million pounds ($227 million), from a loss of £1.95 billion a year earlier.
Shares of BT Group rose 10.9%. Results showed the company swinging back into the black for the fourth quarter, reporting a pretax profit of £251 million.
J Sainsbury rose 3.2%. The British supermarket group reported a fiscal-year net profit that jumped to 585 million pounds, up from 289 million pounds in the prior year.
Telefonica shares declined 2.5%. The Madrid telecom services giant reported first-quarter earnings rose 2% to 1.66 billion euros ($2.11 billion) and affirmed earnings estimates for 2010.
Sensex ends with modest gains
Indian markets ended with modest gains on Thursday as the benchmark indices continued to suffer from the ongoing volatile consolidation. Markets started off with a positive bias, tracking overnight gains in the US markets. However, the momentum lost some steam in the second half. "The market slipped after government data showed that food inflation rose to 16.44% in the week ended May 1 from 16.04% in the previous week", says Amar Ambani Vice President Research IIFL.
Still, the benchmark indices managed to register gains for second straight day, led by Realty, Auto and Pharma stocks. The Mid-Cap and Small-Cap stocks also attracted some buying.
The BSE Sensex was up 70 points to end at 17,266 and NSE Nifty gained 22 points to close at 5,179. Among the 30 components of Sensex, 21 ended in the positive terrain and 9 ended in the red.
Markets in Asia ended in the positive terrain; the Nikkei in Japan gained 2.1%, Australia's S&P/ASX was up 1.8%, the Hang Seng index in Hong Kong was up 1% and Shanghai SE Composite was down 0.3%.
European indices were trading mixed, the DAX in Germany was down by 1%, the CAC 40 index in France was down 0.2% and the FTSE in the UK was up 0.2%.
Among the BSE sectoral indices, BSE Realty index was the top gainer, the index gained 2.5% followed by BSE Auto index up 2.2% and BSE Consumer Durables index up 1.3%. On the other hand, BSE Metal index was down 0.4% and BSE Oil & Gas index was down 0.2%. Even the Mid-Cap index ended adding p 1% each.
Outside the frontline indices, the big gainers in the broader market were Bajaj Holdings, Godrej Consumers, Bharat Forge and Piramal Healthcare. On the other hand, losers included Allahabad Bank, Jubilant Org, Syndicate Bank and MRPL.
Nitesh Estates', the Realty firm registered a subdued opening on the bourses, the stock started trading at Rs54 per share on the NSE. The stock ended lower by 7% at Rs50 below its issue price of Rs54.
The IPO was oversubscribed 1.16 times. The IPO garnered bids for 7.44 crore shares as against 6.41 crore shares on offer. Category-wise data showed that the QIB category was subscribed 2.54 times. The non-institutional investors category was subscribed just 0.22 times and the retail individual investors category was subscribed a mere 0.16 times.
Nitesh Estates raised more than Rs580mn through issue of 1.08 crore shares to five anchor investors including HSBC Bank (Mauritius), Nomura India Investment Fund, SBI Tax Advantage Fund, SBI Magnum Multicap Fund, and HDFC Monthly Income Plan. The shares were allotted at Rs 54 per share, at the lower end of Rs54 to Rs56 per share price band for the initial public offer.
Nitesh Estates plans to use the proceeds from the IPO to acquire joint development rights, to finance existing and upcoming projects, repay loans and for other general corporate purposes.
Shares of Fortis Healthcare ended flat at Rs163. Singapore's GIC acquired ~6.58% stake in the company, reports stated. The scrip opened at Rs164 it touched an intra-day high of Rs165 and a low of Rs162 and recorded volumes of over 0.22mn shares on BSE.
Shares of Godrej Consumer Products hit 52-week high and surged 14% to end at Rs339 after the company agreed to buy Sara Lee Corp.’s stake in their venture for 185mn euros.
Godrej Consumer exercised the right to buy its partner’s 51% stake in the venture Godrej Sara Lee Ltd. after Sara Lee decided to exit the household insecticides business. Godrej Sara Lee sells household insecticides such as Hit and mosquito repellant GoodKnight.
The scrip opened at Rs306 it touched an intra-day high of Rs347 and a low of Rs306 and has recorded volumes of over 0.65mn shares on BSE.
Power Finance Corporation
Investors with short-term trading perspective can buy the stock of Power Finance Corporation. It is apparent from its charts that it has been on a long-term uptrend from its all-time low of Rs 86 in October 2008. Since then, the stock has been forming higher peaks and higher troughs. Finding support in the range between Rs 230 and Rs 235 in late February 2010, the stock resumed its upward journey. The medium-term trend is also up since February. The stock is trading way above the 21- and 50-day moving averages. The stock has gained almost five per cent in last two trading sessions, penetrating immediate resistance level of Rs 282. Daily moving average convergence and divergence indicator has signalled a buy and is featuring in the positive territory. Both daily and weekly relative strength indices which have entered into the bullish zone from the neutral region, reinforces the bullish momentum. We are bullish on the stock from a short-term perspective. We expect it to rally further until it hits our price target of Rs 310 in the coming trading sessions. Short-term traders can buy the stock with stop-loss at Rs 278.
via BL
Precious metals lose some glitter
Prices drop as dollar heads up
Precious metals ended substantially lower on Thursday, 13 May at Comex. Prices dropped due to profit booking after yellow metal touched record highs couple of times in the past few days. The strong dollar also took some shine away from precious metals.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Thursday, gold for June delivery ended at $1,229.2 an ounce, lower by $13.9 (1.1%) an ounce on the New York Mercantile Exchange. Yesterday, prices rose to a high of $1,249.3 during intra day trading. Gold for June delivery had settled above $1,200 in early December, only to pull back to $1,172 area and dip as much as the $1,050 vicinity in early February.
Gold opened in the red on Thursday but pared losses as the session progressed, even changing paths, and touching a fresh record in midday trading, but such gains were short lived as the euro remained under pressure against the dollar.
Last week, gold ended higher by 2.5%. For the month of April, gold ended higher by 6%. For the first quarter of this year, gold rose by 1.7%, its sixth quarterly rise. On a year to date basis, gold is higher by 11.8%.
On Thursday, July Comex silver futures ended lower by 16 cents (0.8%) at $19.49 an ounce. Last week, silver ended lower by 0.9%. For the month of April, silver ended higher by 4.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 10.2%.
In the currency market today, the euro dropped once again against the dollar. The dollar index, which measures the strength of the dollar against a basket of six other currencies rose by 0.6%.
Among economic data for the day, The Labor Department in US reported on Thursday, 13 May 2010 that the number of people applying for unemployment benefits essentially held steady at 444,000 in the latest week.
As per the report, claims fell by 4,000 in the week ended 8 May but the data was revised up by 4,000 for the prior week to a seasonally adjusted 448,000. Initial claims have fallen just 2.2% since the beginning of the year, but they are 29% lower compared with a year ago. The four-week average of initial claims, a better gauge of employment trends than the volatile weekly number, dropped by 9,000 to 450,500.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.
At the MCX, gold prices for June delivery closed lower by Rs 199 (1.09%) at Rs 18,030 per ten grams. Prices rose to a high of Rs 18,201 per 10 grams and fell to a low of Rs 17,966 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 234 (0.78%) lower at Rs 29,708/Kg. Prices opened at Rs 29,850/kg and fell to a low of Rs 29,522/Kg during the day's trading.
StanChart IDR issue to open on 25 May 2010
Bank to issue 240 million Indian Depository Receipts
Asia-focussed British bank Standard Chartered's Indian Depository Receipt (IDR) issue will open on 25 May 2010 and close on 28 May 2010. StanChart will issue 240 million IDRs, with every 10 IDRs representing one share of Standard Chartered Plc.
StanChart's IDR is the first issue of its kind in India. Like American or Global Depository Receipts, where Indian companies raise resources overseas, IDRs enable foreign companies to do the same in India.
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, among others. The bank has operations in an array of verticals, including consumer and wholesale banking, private banking and SME banking.
Standard Chartered is listed in London and Hong Kong. As per the Securities and Exchange Board of India'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.
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