As part of the course, functions of an investment bank in Bangladesh, specially focused on issue management & portfolio management is analyzed – by studying IDLE Investments Ltd and focusing the merchant banking functions of the many, especially the issue management & portfolio management activities. 1. 2 Objectives of the study 1. 2. 1 Broad objective To analyze the issue management & portfolio management functions of IDLE Investments Ltd. 1. 2. 2 Specific objectives To analyze the issue management functions of IDLE Investments Ltd.
To analyze merchant banking activities of the company To indemnify and understand the meaning of merchant banking To give suggestions as to further improvement where applicable 1.
3 Methodology of the study In the course of preparation of this report, both primary as well as secondary data as been used. The details of the sources of data are as follows: Collection of primary data: Direct interview of company executive of IDLE Investments Ltd. Collection of secondary data: Collected from the banks records, corporate newsletter, branches manuals, different websites and various publications of the company.
Annual report. 1. 4 Limitations of the study The duration of work was not enough to cover all aspects of the company’s operations. Data unavailability was the main constraint. Official documentation regarding issue management & portfolio management functions and detailed activities of the company were not completely available. There was no access to some of the required information regarding issue management & portfolio management of the company, since they were strictly confidential and classified, and therefore only available to certain personnel of the company only.
The company could not provide any executive who had enough time to discuss in details about the overall issue management & portfolio management policies and procedures, since each personnel was busy performing his or her own duties of the company. Since there is an inherent lack of required information for this report, assumptions have to be made which might have inevitably resulted in some unwanted mistakes to occur while preparing this report.
Background IDLE was initially established in Bangladesh in 1985 through the collaboration of International Finance Corporation (AFC) of the World Bank, German Investment and Development Company (DEG), Coonskin Bank and Korean Development Leasing Corporation of South Korea, the Gag Khan Fund for Economic Development, the City Bank Limited, PIPED of Bangladesh Limited, and Standard BEMA Corporation. Portfolio Management Service is the latest addition of its dynamic products which is under the investment bank division.
Its merchant banking wing, IDLE Investments Limited, a wholly-owned subsidiary of IDLE is a premier brand for investment banking in the country. At present it is performing as an issue manager and underwriter as well as portfolio manager in Bangladesh capital market. IDLE Investments Limited (IDLE) was incorporated in Bangladesh as a private limited Company on May 19, 2010, under the Companies Act 1994. It is a wholly owned subsidiary of IDLE Finance Limited since inception. However the Company received Merchant Banking License from SEC on August 02, 2011 and commenced it operation on August 16, 2011.
This new company took over all the business, operations and services of the Merchant Banking Division of IDLE Finance Limited on the commencement date. The Company’s principal activities are Investment Banking (Issue management, Underwriting and Corporate Advisory), Discretionary Portfolio Management, Margin Lending and Custodial Services. The company also produces top grade equity research and publishes it in the Bloomberg. IDLE Investments Limited provides a gig standard of professional and personalized services to its local and NOR clients.
It has proven track record of serving clients satisfying their needs and wants while maintaining strict compliance with country’s laws and highest ethical standards. IDLE has been treated as one of the top ranking merchant bankers in the country for its quality investment banking and portfolio management services. Vision, Mission and Values Vision We will be the best financial brand in the country Mission We will focus on quality growth, superior customer experience and sustainable business practices