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Standard Chartered to fully control erstwhile UTI Securities

Kolkata, May 20 (IANS) Britain-based global bank Standard Chartered Plc is planning to take total control of the erstwhile UTI Securities by acquiring another 25.1 percent stake by the third quarter of 2010, a top official said here Thursday.

The bank already has 74.9 percent stake in the erstwhile company.

‘We are planning to pick the remaining stake in (the erstwhile) UTI Securities from Securities Trading Corporation of India Limited (STCI) by the third quarter of this year,’ the bank’s chief executive, India and south Asia, Neeraj Swaroop, told reporters on the sidelines of a press meet.

On Jan 11, 2008, Standard Chartered Bank (Mauritius) Limited (SCBM) acquired 49 percent stake of the erstwhile UTI Securities Limited from STCI. Accordingly, the name of the company was changed from UTI Securities Limited to Standard Chartered – STCI Capital Markets Limited with effect from Jan 17, 2008.

On Dec 12, 2008, SCBM acquired 25.9 percent stake in Standard Chartered – STCI Capital Markets Limited to increase its total stake in Standard Chartered – STCI Capital Markets Limited from 49 percent to 74.9 percent.

Now the bank would pick up the remaining 25.1 percent stake.

The global bank is coming out with an Indian Depository Receipt (IDR) issue to boost its market visibility and brand profile in India. It plans to raise Rs.2,400-2,700 crore through the IDR issue.

The IDR is slated to open on May 25 and close on May 28.

The IDRs will be listed both on the Bombay Stock Exchange and the National Stock Exchange.

The bank has 12.6 percent capital adequacy ratio in its Indian operations and it has infused $1.3 billion in the last two years into the operations in the country.

The bank with 94 branches and 257 ATMs in the country plans to add another 200 ATMs this year, Swaroop said.

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