StanChart hails Indian share sale

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Standard Chartered, the emerging markets bank, yesterday raised $530m (£366m) from a share sale in India. The bank is listed in the UK but makes about 75 per cent of of its profits in Asia.

The company is hoping that the share issue will build its presence and brand in India, one of its most important markets. Standard Chartered was barely hit by the credit crunch and did not need to take any direct aid from the UK taxpayer.

The company sold 240 million Indian Depositary Receipts (IDRs) at 104 rupees each in its public share offering that compared with a price range of 100 to 115 rupees. It is the first issue of its kind.

The bank's sale of Indian shares ended successfully despite the recent pronounced volatility in the world's markets and a new payment rule that weighed on demand in India during the first three days of the offer. Investors bid for 2.2 times the 204 million IDRs that were offered to the public. Each 10 IDRs represent one share.