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SGX yesterday announced the listing of its first GDR by Uttam Galva Steels Limited.
GDRs are certificates representing an issuer's underlying shares already quoted on another stock exchange. They are offered to and traded only by institutional and accredited (wealthy) investors. Listing of GDRs on SGX is a fast and cost efficient method of accessing capital from a large pool of international funds.
Uttam Galva Steels Limited is listed on the Bombay Stock Exchange, National Stock Exchange, the Delhi Stock Exchange and the Calcutta Stock Exchange.
So when is the IPO ? I'm oversea now.
India's 2nd-largest producer of galvanised and cold-rolled steel sold US$20m of its shares overseas to fund its expansion. The global depositary receipts, or GDRs, were sold at about US$0.92 each, or 40 rupees apiece. Each GDR represents one local share. The shares will trade on SGX, making it the first GDR to list on the bourse, JP Morgan Chase Bank NA, the company's adviser, said.
Uttam is spending R7bn ($231m) this year on increasing production of galvanised steel to 800,000 tonnes to meet demand from users including Bharat Heavy Electricals Ltd and Larsen & Toubro Ltd, India's biggest engineering companies. Uttam has raised the production of cold-rolled steel to 1m tonnes.