The Growth of the Economy

CHAPTER -1

Introduction

Introduction

A healthy and growing economy is considered as a heart for any developed country. Recently according to many researchers, capital market plays a role of an engine for the growth of the economy. While lending by commercial banks provides valuable initial support for corporate growth, a developed stock-market also contributes for moving into a more mature growth phase of the economy. Nowadays, Asia is considered to be one of the powerful economies in the world. As a result recent booming economies of India and China are attracting all other North American multinational companies to invest. Bangladesh is a South Asian country which always has the potential to be a developed country and favorable climate, cheap labor has made Bangladesh as one of the most attractive options for the foreign investors. Therefore in recent times we are witnessing many multination and big conglomerates are entering into Bangladeshi market. On the other side a steady capital market and investors’ willingness to invest into the share market has also been observed. Many local companies, banks have entered and are entering into the capital market of Bangladesh. We have seen the biggest IPO in the history of Bangladesh by Grameen phone has also depicted a strong base for the multinational companies into the capital market. So now situation demands the existing multinational companies to enter into the capital market for a more developed capital market base in order to accelerate the economic growth of Bangladesh. For that purpose, here in this report I will discuss some important strategies that can be used by “Nestle”, one of the biggest multinational companies in Bangladesh to enter into the Bangladeshi capital market. After an extensive search in different media, I didn’t find out any form of research paper or any kind of analysis in the predefined topic. However for that reason my report is not able to make any literature review.

Objective

In terms of doing any work whether it is managerial or clerical, first it’s vital to define some set of activities that has to be accomplished at the end of the day. These set of specified efforts or pre- defined activities are known as objective. So before going in depth to the project work, I have defined some objectives that will be fulfilled throughout the report. So my desired end points are-

Specific Objectives:

• Pricing after ensuring some legal aspects
• Determining a fair price of Nestle to offer in the capital market of Bangladesh
• Ensure effective marketing Strategies to make people aware of the IPO

The report aims to determine a fair price for Nestle which can be offered as IPO in the capital market of Bangladesh. The price determined by applying effective valuation technique must be justified from all relevant aspect which will make a win win situation for the potential investor of the IPO.