IDR

Others 497 views 2 replies

what is the difference between IDR(Indian Depository Reciepts) and shares issued through pure IPO route?

Thnx in advance!!

Replies (2)

In case of the IPO route, the foreign company directly issues shares in India to investors.

In case of IDRs, the foreign company delivers its foreign currency denominated shares to a depository through a custodian bank. The depository then issues proportionate IDRs which represent those underlying shares to the foreign company. The company then issues these IDRs to the investors and these IDRs are freely traded in the stock markets

In General Terms, IDR holders dont have voting Right,while Equity Share holders possess such rights.


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