StanChart India to raise over $500mln via IDR

IDR listing will allow lender to build brand and develop business in India.

U.K.-based Standard Chartered PLC will issue 220 million units of Indian Depository Receipts (IDR)  and is planning to raise more than $500 million, making it the first overseas company to list locally via the instrument.

The bank has filed a draft prospectus with capital market regulator Securities & Exchange Board of India and expects to complete the listing process by June end, Arijit De, a spokesman of the bank, told Dow Jones Newswires Tuesday.

"We will raise the minimum amount required to maintain liquidity in the instrument," Mr. De said.

The bank will have to send back the proceeds from the listing to the U.K. immediately--as per Indian regulations--and the IDRs have to be denominated in Indian rupees.

The main rationale for listing is brand-building and business development in India, which is the Asia-focused bank's second-largest market, the bank said.

"Our intention to be the first company to list IDRs demonstrates how important India is to Standard Chartered," Standard Chartered Group Chief Executive Peter Sands said in a filing to the Hong Kong Stock Exchange, where the lender is also listed.

View the full story in the Wall Street Journal.