IDLC Investments Limited

IDLC Investments Limited
Private
Industry Financial Services
Founded 1999 (as Merchant Banking Division) (1999 (as Merchant Banking Division))
2010 (as company) (2010 (as company))
Headquarters 65/2/2 Bir Protik Gazi Golam Dostogir Road (Culvert Road),
Dhaka, Bangladesh
Area served
 Bangladesh
Key people
  • Monower Uddin Ahmed (Chairman)
  • Md. Moniruzzaman, CFA (MD)
Products Investment banking, Portfolio management, Margin loans, Securities research

IDLC Investments Limited (IDLCIL) is a merchant bank, headquartered in Dhaka, Bangladesh. The company is a wholly owned subsidiary of IDLC Finance Limited (IDLC), the country's largest[1] Non-Banking Financial Institution, which was created jointly by, International Finance Corporation, German Investment Corporation, Korea Development Bank, Aga Khan Fund for Economic Development and other local and international institutions.

IDLCIL started as the merchant banking division of IDLC in 1999. Later in 2010, it emerged as a separate company as per the requirement of Bangladesh Securities and Exchange Commission. The firm provides Investment banking, Portfolio management, Margin loans and Securities research services to its clients, which include both corporations and individuals.

History

Investment banking operations of IDLC commenced in 1999, as Merchant Banking Division with the primary activity being underwriting of shares. The division managed its first Initial Public Offering (IPO) in 2003, by taking Bank Asia public. The company entered into portfolio management business by offering non-discretionary fund management services in 2004 and discretionary fund management services in 2007. It was the first issue manager to exercise Greenshoe dilution option,[2] in IPO of Marico Bangladesh Ltd., a local subsidiary of Marico, in 2009. In 2010, it emerged as the first ever issue manager[3][4] in Bangladesh to manage IPO under Book Building method by raising equity worth of BDT 1,656 million (USD 23 million) for RAK Ceramics (Bangladesh) Limited, a local subsidiary of RAK Ceramics.

The division was transformed into a new company, IDLC Investments Limited, in 2010, in compliance to a requirement of Bangladesh Securities and Exchange Commission.

Services

  • Investment Banking : IDLC Investments Limited offers initial public offering, repeat public offering, rights issue, private placement and capital raising services. The company has helped raise BDT 14,336 million[5] (USD 184 million) through its issue management operations, as of 2013.
  • Portfolio Management : The firm provide portfolio management services to its clients, by offering two products. Discretionary Portfolio Management service is targeted towards high net worth individuals, with tailored investment management solutions. Easy Invest, a Systematic Investment Plan is targeted towards mass people, encouraging systematic savings and investment in the capital market.
  • Margin Loan : The company also provides non-discretionary margin loan products to its clients. The size of margin loan basket stood at BDT 3,444 million (USD 44 million) as of 2013.[5]
  • Research : IDLCIL provides investment research services to its clients in forms of Equity Research and market commentaries.

See also

References

  1. ↑ "Liquidity shortage hits NBFIs". Thefinancialespress-bd.com. Retrieved 19 November 2014.
  2. ↑ "Marico doubles IPO". Thefinancialespress-bd.com. Retrieved 19 November 2014.
  3. ↑ "Financial Express :: Financial Newspaper of Bangladesh". Thefinancialespress-bd.com. Retrieved 19 November 2014.
  4. ↑ "RAK Ceramics takes on first IPO under book building". Archive.thedailystar.net. Retrieved 19 November 2014.
  5. 1 2 "Annual Report 2013" (PDF). Idlc.com. Retrieved 19 November 2014.
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