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Standard Chartered IDR Post Mortem – Gets “Bailed out” by Institutions at Lower End

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An In Depth Review of Standard Chartered IDR revealed that its was heavily disadvantageous for retail investors  and that’s what the final subscriptions numbers  of the IDR listing proves as well .The Retail Portion was subscribed only by 25% –  a resounding “no-confidence of StanChart IDR” which was ostensibly done to raise the public profile of the company.I had listed out 7 Reasons on why not to subscribe to the StanChart IDR issue and think that other people thought so too.It was mostly subscribed at the lower end that is below Rs 104 compared to the book building band . The Qualified Institutional Buyers(QIB) (Institutional Buyers in layman language) was the most heavily subscribed with over 4 times – no doubt on the advice of the lead bankers Goldman Sachs and UBS.Note these institutions pack a lot of punch internationally and their international parents manage  Billions of Dollars  in investments.It would have been a massive loss of face for UBS and Goldman if StanChart IDR had failed to get subscribed.

Standard Chartered PLC

Sr.No. Category No.of shares offered/reserved No. of shares bid for No. of times of total meant for the category
1 Qualified Institutional Buyers (QIBs) 84000000 348394400 4.1476
1(a) Foreign Institutional Investors (FIIs) 253237800
1(b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) 30725600
1(c) Mutual Funds 63364400
1(d) Others 1066600
2 Non Institutional Investors 43200000 82150400 1.9016
2(a) Corporates 67325400
2(b) Individuals (Other than RIIs) 14816400
2(c) Others 8600
3 Retail Individual Investors (RIIs) 72000000 18210200 0.2529
3(a) Cut Off 14184800
3(b) Price Bids 4025400
4 Employee Reservation 4800000 950000 0.1979
4(a) Cut Off 848400
4(b) Price Bids 101600

Updated as on 28 May 2010 at 1900 hrs

Source: NSE


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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