StanChart mulls $1-billion IDR issue by June

StanChart is planning to raise up to $1 billion (over Rs4,500 crore) by June through Indian Depository Receipts

Global banking giant Standard Chartered Bank (StanChart) on Wednesday said that it is planning to raise up to $1 billion (over Rs4,500 crore) by June through Indian Depository Receipts (IDRs), reports PTI.

"We remain keen to pursue our intent to have an IDR offering. We are looking at quarter two (April-June 2010) and we are looking at $500 million to $1 billion," Standard Chartered Bank (South Asia) chief executive Neeraj Swaroop said on the sidelines of an event on microfinance.

The offering is subject to the market conditions and the Bank will have to take the final decision on it, he said. The IDR would be issued by parent entity Standard Chartered PLC.

Like American or Global Depository Receipts (ADRs/GDRs), where Indian companies raise resources overseas, IDRs enable foreign companies to do the same from India.

ADRs or IDRs are derivative instruments that derive their value from the shares deposited with custodians. The foreign companies deposit shares with a custodian, who in turn issues depository receipts based on these shares. The receipts are based on the ratio of shares equivalent to depository receipts.

The government notified the IDR rules in 2004. Market regulator Securities and Exchange Board of India (SEBI) norms too are in place for a number of years now.

SEBI guidelines permit only those companies listed in their home market for at least three years and have been profitable for three of the preceding five years for IDR issues.

Standard Chartered Bank plans to file the draft red herring prospectus with SEBI towards the end of March, Mr Swaroop had earlier said.

The Bank has appointed a host of investment bankers including Goldman Sachs, UBS, JM, Kotak Mahindra, SBI Capital and DSP Merril Lynch, to advise it on the proposed IDR issue.

In November last year, StanChart Global chief executive Peter Sands said that the proposed IDR issue would enhance the lenders commitment to the local market.

StanChart has over 94 branches in 37 cities in the country and a combined customer base of around 20 lakh retail customers, among others.

The Bank has operations in an array of verticals, including consumer and wholesale banking, private banking and small and medium enterprises (SME) banking.
 

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Unique ID number will ensure transparency, says Nilekani

The UID number would give hundreds of millions of Indians, who have no means to prove their identity in the absence of birth certificates and education certificates, an opportunity to access services and benefits that they are entitled to

The Unique Identification Number (UID) will bring in mobility, choice, transparency and accountability at the doorsteps of the common man, Unique Identification Authority of India (UIDAI) chairman Nandan Nilekani has said, reports PTI.

The Infosys co-founder, who now heads the government's ambitious UIDAI, said that the UID is a scheme for the marginalised people of the country.

He said the slogan of 'bijli, sadak, pani' which talks about the need for development would now be taken over by a new catchphrase seeking bank accounts, mobile numbers and UIDs.

The 16-digit unique number, which is likely to be rolled out by next year, would be a fundamental part of the next decade, he said.

Mr Nilekani, who was speaking at a summit in New Delhi organised by the Skoch Foundation, said talks are already on with various government departments and all state governments for bringing them on board on the project which aims to give a unique number to all residents of the country.

Talking about public partnership in the project, he said that it was very crucial and the public can volunteer for the project and can even work with it on a sabbatical.

"We are in talks with everyone including major industries like mobile companies, banks and everyone interested," he said. Mr Nilekani said from the slogan of ‘roti, kapda, makaan’ (food, clothing, shelter) in the 1960s and 1970s, India grew to the slogan of ‘bijli, sadak, pani’ (electricity, roads, water) in the last decade.

"I think, in the next ten years, it would be bank account, mobile number and UID. All these are abstract ideas but they are tools for empowerment, access and opportunity," he said.

Mr Nilekani said that the UID number would give hundreds of millions of Indians, who have no means to prove their identity in the absence of birth certificates and education certificates, an opportunity to access services and benefits that they are entitled to.

Mr Nilekani also said that the UID number would enable the government to target its rural employment, food and education programmes to their beneficiaries by identifying them in a robust way and remove duplication.
 

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COMMENTS

BABU JOSE MADATHIL

7 years ago

UID PROJECT IS A GAME CHANGER, NO DOUBT. IT WILL BRING LIGHT TO THE LIVES OF CRORES OF THE UNFORTUNATE IN INDIA. THOSE WHO NOW EXPLOIT THE POOR UNEDUCATED PUBLIC NOW WILL HAVE TO EAT HUMBLE PIE OR BITE THE DUST. OF COURSE THEY ARE GOING TO PUT UP STRICT RESISTANCE TO THIS PROJECT IF AND WHEN THEY COME TO KNOW OF THE DESTRUCTION IT WILL CAUSE TO THEIR VICE LIKE GRIP OF THE POOR PUBLIC.

Letters of appeal from Google’s partners in China

A group of Google Inc’s partners in China have sent a letter to the Internet giant, saying that their businesses are in jeopardy if Google closes its Chinese search engine and are demanding to know how they will be compensated.

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