British banking major Standard Chartered made its debut in the Indian stock market on Friday at Rs. 105 a share against its issue price of Rs. 104 per unit.

The premium garnered by the country’s first Indian Depository Receipts (IDR) listing was about 1 per cent in a strong broader market. The BSE Sensex was trading 1 per cent higher at 17,103 in afternoon session.

Soon after listing, the scrip touched a high of 108, but the momentum did not sustain for longer and it fell to Rs 103.70 at 1300 hrs on the Bombay Stock Exchange. A similar trend was seen on the National Stock Exchange, where it was trading at Rs 104 in the afternoon.

On London Sock Exchange, trading in shares of Standard Chartered Plc also was tepid today. The scrip fell 1.49 per cent at 16.24 pounds in morning trade, though Britain’s benchmark FTSE 100 was gained by 0.27 per cent.

Market analysts said domestic investors were tracking the movement of StanChart Plc on the LSE, and its decline there forwarded losses here also.

“StanChart’s price in domestic markets will take cues from its share price movement on the LSE,” said a senior research analyst at a brokerage.

This is StanChart’s third listing after London and Hong Kong.

The bank raised Rs 2,490 crore through the maiden Indian depository receipts issue of 24 crore receipts. The IDR issue by the lending major was subscribed 2.2 times, though initial response was not very enthusiastic both from institutions and retail investors.

“The stock may see some correction in short term, but in the long-term it will be a trend setter for other global companies looking to tap Indian market,” CNI Research CMD Kishore P Ostwal said.

StanChart, the country’s largest and the oldest foreign bank, came out with its public offer of 24 crore IDRs in the price range of Rs 100-115 a unit. The issue was open between May 25 to May 28.

After lisiting, StanChart’s Chairman John Peace said the banks did not have any specific plans on how to deploy the issue proceeds but reiterated that it will infuse funds here to support its business operations at the right time.

“We have no specific plans to deploy the capital (from the issue) at this stage.... (But) we will continue to invest in our core markets and that includes India,” Mr. Peace said.

Peace termed the IDR issue as a ‘bold and strategic move’ aimed at enhancing its visibility in the market and to allow local investors to participate in its future growth.

An IDR represents ownership in shares of a foreign firm, which trades in domestic capital market. An IDR is bought and sold just like a regular stock. Ten StanChart IDRs represent one underlying share of the British parent company.