Standard Chartered, the first multinational company to issue Indian Depository Receipts (IDR), made a modest debut on the local stock exchange. The British bank, that raised around $530 million in the first ever IDR issue last month, opened with a modest premium of less than 1% at Bombay Stock Exchange, hit an intra day high of Rs 108 sunk to Rs 100.6 against issue price of Rs 104 and in early morning trade is quoting close to its issue price.
Standard Chartered last traded at 1,649 pence at London (close to its 52 week high) which works out to be Rs 113.7 per IDR. The bank which was till few years ago the largest foreign bank in the country had said it is listing for brand building exercise. India is the second most profitable country operations for Standard Chartered which saw profit rise 19% to $1.06 billion for 2009 over the year ago period and accounted for one-fifth of the total global profits of the bank. The British bank generates most profit from Hong Kong operations.
US bank Citigroup had over the last couple of years overtaken StanChart in India in terms of balance sheet size. The other large foreign banks in the country are HSBC and Deutsche Bank.
StanChart has been one of the oldest international banks in the country. It has been here for over 150 years with 94 branches and 17,500 employees in India.