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
