MARKET TALK: Standard Chartered IDR Opens At INR105

11th Jun 2010 05:10

0410 GMT [Dow Jones] NEW LISTING: Standard Chartered PLC (580001.BY) IDR opens trade at INR105 vs INR104 issue price. "That's a fair price. I think we will see a trend where the IDRs will initially trade in the range of a 6%-8% discount to the underlying London stock's price," says Arun Kejriwal, director, KRIS Pvt. Ltd. However, says insurance companies -- large institutional players in India -- cannot invest in IDRs as per regulatory rules, which would lead to lack of participation. 10 IDRs represent one underlying share of Standard Chartered PLC (STAN.LN), which ended at GBP16.49 in London. IDR, which has hit low of INR100.60, high of INR108 in session, now trading at INR105.70 -- discount of about 6.8% to London stock, based on GBP/INR of 68.77. Bank raised about INR24.96 billion ($531 million) by selling 240 million IDRs, deal 2.2X subscribed; intends to use issue proceeds to support growth, widen investor base, increase market visibility in India. Standard Chartered is first foreign company to issue IDRs in Indian market. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 11, 2010 00:10 ET (04:10 GMT)