Standard Chartered Plc received a rather cold response from investors on the first day of its Indian Depository Receipts (IDRs) issue. According to the National Stock Exchange (NSE), the issue was subscribed just 0.05 times on Tuesday — the first day of bidding.
In all, the issue received bids for 11.17 million IDRs, as against a total 240 million IDRs on offer in the price band of Rs 100 to Rs 115. The institutional portion of the issue was subscribed 0.12 times with bids pouring in for 10.41 million IDRs.
Interestingly, foreign institutional investors (FIIs) did not bid for a single share on the first day. On the other hand, domestic financial institutions put in bids for 8.70 million IDRs, while mutual funds bid for 1.71 million IDRs.
Stock exchange data further shows the non-institutional and retail portion also saw very few bids on Tuesday. While retail investors submitted bids for 0.72 million IDRs, non-institutional investors applied for only 40,800 IDRs.
Standard Chartered’s IDR issue — India’s first — will close for subscription on May 28. It is the first IDR issue to hit the market with the new norms that call for 100 per cent up-front margin from FIIs.
