The Hindu : Business : IDR holders can participate in rights issue: StanChart

Online edition of India's National Newspaper
Thursday, Oct 21, 2010
ePaper | Mobile/PDA Version

Business

Business

IDR holders can participate in rights issue: StanChart

The record date of October 25 will be used to determine entitlement under the rights issue

MUMBAI: U.K.-based Standard Chartered, the first foreign entity to be listed in the country, on Wednesday said its Indian Depository Receipt (IDR) holders were eligible to participate in the bank's forthcoming $5.3 billion rights issue.

“Even though the holders of IDRs are not able to take up new shares under the rights issue, they do have an entitlement to new shares under the rights issue on the basis of IDRs held on October 25,” Standard Chartered said in a filing to the Bombay Stock Exchange. The record date of October 25 will be used to determine entitlement under the rights issue, in accordance with Indian rules, it said.

“IDR holders together have an entitlement to 30 lakh new Standard Chartered shares,” it said, adding that the entitlement of IDRs holders will be based on the total amount received from the sale of all the rights.

These sale proceeds will be received in pounds sterling.

As mandated by the terms and conditions of the IDRs, the bank will convert these proceeds into Indian rupees.

The bank proposes to effect this conversion after deduction of exchange fees and on the basis of the pound sterling-Indian rupee rate of exchange as derived from the Reserve Bank of India website at the close of business in India on each day notified for the sale of rights, it said.

Once all the rights have been sold, the total net proceeds converted into Indian rupees will be distributed on a pro-rata basis to eligible IDR holders within 15 business days, it added. — PTI

Printer friendly page
Send this article to Friends by E-Mail

Business