Methods of share valuation of BRAC EPL Investments Limited

Abstract

Formerly EPL (Equity Partners Limited), BRAC EPL Investments Limited is a subsidiary of BRAC Bank Limited which provides a wide range of services ranging from Corporate Advisory to Issue Management. Since its inception it has shown tremendous growth in profitability, customer base and so on. One of the most important departments is the Investment Banking which primarily does the act of Issue Management and Corporate advisory. Being an intern there, I had opportunity to learn how an issue management is done and what are the processes involved. The main methods of valuation are Book building and Fixed Price method. Both are discussed in detail as per rules of SEC. Whereas Book building considers the demand for the company shares the Fixed price method takes the fundamentals into consideration. There are many similarities as well as differences. Then the impacts of the pricing methods on the stakeholders are discussed along with a set of recommendations.