Effect on cost of capital of Syngenta Bangladesh Limited by lntroducing public share: a comparative analysis with Square Pharmaceuticals Limited and ACI Limited

Abstract

The purpose of this report is to is to analyze the effect on Cost of Capital of Syngenta Bangladesh Limited by introducing public share and launching IPO in the stock market. This study has been conducted with a comparative analysis with two renowned public limited companies in Bangladesh which are operating in the partially similar industry. The selected companies are Square Pharmaceuticals Limited and ACI Limited. The first chapter of this report presents my internship experience at Syngenta. A brief description has been discussed regarding the job scope, projects that I have completed, benefits of the interns, training and development I have received etc. Moreover, it highlights my contribution for the company as an intern and the learning outcome from this internship experience of three months. The second chapter, the organization part provides a detailed overview of the internship company, Syngenta Bangladesh Limited. It includes management practices, marketing practices, financial performance and accounting practices, operations management and information system practices, industry and competitive analysis. Based on this overview, few recommendation has been provided for the company which can be implemented for future improvement of the company. All the data of this chapter has been collected from different public sources, mainly from the company website. Moreover, some of the information has been collected through direct interview with the employees of this company. However, the financial data was not available for this company, since it is not a public limited company. For this reason, the financial data of the mother company, Syngenta Global has been used to perform ratio analysis. The third chapter is the project part, where a comparative analysis has been conducted in order to find out whether introducing public share of Syngenta Bangladesh Limited will reduce the overall Cost of Capital of this company or not. For the comparative analysis two related companies of the similar industry has been selected; Square Pharmaceuticals Limited and ACI Limited. As part of the primary objective, the Weighted Average Cost of Capital of these two companies has been calculated and compared with the Working Capital Cost of Syngenta Bangladesh Limited. It will help the reader understand how much benefit public limited companies in the similar industry are getting to reduce their overall cost of capital by diversifying their source of funding. On the other hand, the stock valuation has been calculated based on P/E Multiple Approach as part of the secondary objective to find out the industry attractiveness. It will provide an insight about stocks of pharmaceutical and chemical industry of Bangladesh from the perspective of the investors to understand how the future stocks of Syngenta will perform in the secondary market. Based on these two analysis, a recommendation has been provided for Syngenta Bangladesh Limited regarding listing their company in the stock market. Overall I have thoroughly enjoyed preparing this report which helped me relate my academic financial knowledge with the real-world financial practices. Moreover, I could apply my knowledge to propose a solution to an ongoing issue faced by Syngenta Bangladesh Limited. This report has added significant value to my personal, academic, and career growth.