British banking major Standard Chartered will get listed on the domestic bourses tomorrow and analysts are hopeful that the debut of the maiden Indian depository receipts may get good response from investors.
The country's first-ever IDR issue by Standard Chartered was subscribed 2.2 times, though initial response was not very enthusiastic both from institutions and retail investors. The lending major has fixed the issue price at Rs 104 and raised Rs 2,490 crore from 24 crore receipts.
This will be StanChart's third listing after London and Hong Kong.
Market experts said the movement in the share price of StanChart on the London Stock Exchange and Hong Kong bourse will be a key factor tomorrow's listing.
"Domestic investors will be tracking the movement on the London and the Hong Kong exchanges and I hope that the listing will be at a good premium," SMC Capitals Equity Head Jagannadham Thunuguntla said.
Shares of StanChart were trading at 16.26 pounds, up 0.31 per cent in the late-afternoon trade on the LSE.
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"Markets have recovered in past two-sessions and tomorrow also Dalal Street is expected to trade in the green, so we hope that the listing will be positive," said a senior researcher at a brokerage.
StanChart, the country's largest and the oldest foreign bank, came out with its public offer of 24 crore IDRs in the price range of Rs 100-115 a unit. The issue was open between May 25 and May 28. The bank offered a discount of Rs 5.20 (5 per cent to the issue price) to retail investors and eligible employees.
An IDR represents ownership in shares of a foreign firm, which trades in domestic capital market. An IDR is bought and sold just like a regular stock. Ten StanChart IDRs represent one underlying share of the British parent company.
StanChart focuses on developing its wholesale and consumer banking business in Asia, Africa and West Asia, from where it derives 90 per cent of its operating income and profits.
India is the second-largest profit centre for the bank after Hong Kong. Globally, it has around 1,700 branches spanning 71 countries.