British bank Standard Chartered's sale of Indian shares worth up to about $590 million ended successfully after volatile markets and a new payment rule weighed on demand during its first three days.Investors had bid for about 2.2 times the 204 million Indian Depositary Receipts (IDRs) on offer to the public as of Friday, stock exchange data showed. Trading will begin on June 11.StanChart's was the first IDR issue, and the emerging markets-focused bank has said the offering was aimed more at building its brand and presence in its second-largest market than about raising funds.The move was closely watched by investment bankers as well as other foreign firms with a large consumer presence in Asia's third-largest economy and who may also be considering share issues to raise their profiles.Most bids for the IDRs were towards the low end of its 100-115 rupee price range. The public portion of the offer had been only about 11 percent covered at the end of Thursday.A rule requiring institutional investors to pay 100 percent of the value of their share applications, which took effect on May 1, kept a lid on early demand as big investors did not want to tie up funds sooner than was necessary."Since all players now have to put 100 percent of the money, the bidding will be more realistic. Those days of oversubscription several times over are gone," said Naresh Kumar Garg, chief executive officer at Sahara Mutual Fund.Every 10 IDRs represents one share of Standard Chartered Plc. Based on Thursday's London closing price of 1,682 pence, and the currency conversion, each IDR was worth about 114 rupees as of Friday morning, towards the high end of the price range."The book is building around 104-105 rupees. This is at a substantial discount to the London stock price, which is why we saw good subscription on the last day," said Arun Kejriwal, director of research firm KRIS.Standard Chartered was selling a total of 240 million IDRs, of which 36 million were allocated to six anchor investors at 104 rupees apiece on Monday. Final pricing was expected by Saturday.Indian share sales often see few orders until the final day, when investors have a better indication of how the deal will be priced.(Additional reporting by Sumeet Chatterjee and Ami Shah, editing by Will Waterman)News posted by www.newsinfoline.com
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