Introduction

Bangladesh is a growing market for telecommunication operation business.

Mobile telecommunication operation sector is the big fish among
telecommunication operation business. At present we have six
telecommunication operators in Bangladesh. Within them, most of the
companies are mainly controlled by MNCs.

Grameen phone Limited, widely known as GP, is the leading

telecommunications service provider in Bangladesh. With more than 20
million subscribers, Grameen phone is the largest cellular operator in the
country. It is a joint venture enterprise between Telenor and Grameen
Telecom Corporation, a non-profit sister concern of the internationally
acclaimed microfinance organization and community development bank
Grameen Bank. Telenor, the largest telecommunications company in
Norway, owns 55.8% shares of grameen phone, Grameen Telecom owns
34.2% and the remaining 10% owns by public and financial institutions.

Few months back Grameen phone decide to raise capital from the capital
market for repayment of overdraft facilities, network expansion, IT & general
and capital expenditure. So they go for Initial public offering (IPO) for issuing
common stock in the primary market. And enlisted both at DSE and CSE.

In our repot, we will try to describe the process of IPO, that grameen phone
use to raise capital. Like no of share they issue, who was the underwriter,
who was the issue manager, talk about important close of their prospectus
and many others. But our main concern will be to evaluate its IPO
performance in the secondary market. For that we will go week by week
share price analysis, then month by month analysis and at the end a overall
analysis.
Short Description about Grameen phone Ltd.
The company has so far invested more than BDT 10,700 crore (USD 1.6
billion) to build the network infrastructure since its inception in 1997. It has
invested over BDT 3,100 crore (USD 450 million) during the first three
quarters of 2007 while BDT 2,100 crore (USD 310 million) was invested in
2006 alone. Grameen phone is also one the largest taxpayers in the country,
having contributed nearly BDT 7000 crore in direct and indirect taxes to the
Government Exchequer over the years. Of this amount, over BDT 2000 crore
was paid in 2006 alone.

Since its inception in March 1997, Grameen phone has built the largest
cellular network in the country with over 10,000 base stations in more than
5700 locations. Presently, nearly 98 percent of the country's population is
within the coverage area of the Grameen phone network.

Grameen phone was also the first operator to introduce the pre-paid service
in September 1999. It established the first 24-hour Call Center, introduced
value-added services such as VMS, SMS, fax and data transmission services,
international roaming service, WAP, SMS-based push-pull services, EDGE,
personal ring back tone and many other products and services.

The entire Grameen phone network is also EDGE/GPRS enabled, allowing

access to high-speed Internet and data services from anywhere within the
coverage area. There are currently nearly 3 million EDGE/GPRS users in the
Grameen phone network.

Grameen phone nearly doubled its subscriber base during the initial years
while the growth was much faster during the later years. It ended the
inaugural year with 18,000 customers, 30,000 by the end of 1998, 60,000 in
1999, 193,000 in 2000, 471,000 in 2001, 775,000 in 2002, 1.16 million in
2003, 2.4 million in 2004, 5.5 million in 2005, 11.3 million in 2006, and it
ended 2007 with 16.5 million customers.

From the very beginning, Grameen phone placed emphasis on providing

good after-sales services. In recent years, the focus has been to provide
after-sales within a short distance from where the customers live. There are
now more than 600 GP Service Desks across the country covering nearly all
upazilas of 61 districts. In addition, there are 72 Grameen phone Centers in
all the divisional cities.

GP has generated direct and indirect employment for a large number of

people over the years. The company presently has more than 5,000 full
and temporary employees. Another 100,000 people are directly dependent
on Grameen phone for their livelihood, working for the Grameen phone
dealers, retailers, scratch card outlets, suppliers, vendors, contractors and
others.

In addition, the Village Phone Program, also started in 1997, provides a good
income-earning opportunity to more than 210,000 mostly women Village
Phone operators living in rural areas. The Village Phone Program is a unique
initiative to provide universal access to telecommunications service in
remote, rural areas. Administered by Grameen Telecom Corporation, it
enables rural people who normally cannot afford to own a telephone to avail
the service while providing the VP operators an opportunity to earn a living.

The Village Phone initiative was given the "GSM in the Community" award at
the global GSM Congress held in Cannes, France in February 2000. Grameen
phone was also adjudged the Best Joint Venture Enterprise of the Year at the
Bangladesh Business Awards in 2002. Grameen phone was presented with
the GSM Association's Global Mobile Award for ‘Best use of Mobile for Social
and Economic Development' at the 3GSM World Congress held in Singapore,
in October 2006, for its Community Information Center (CIC) project, and for
its Health Line Service project at the 3GSM World Congress held in
Barcelona, Spain, in February 2007.
Grameen phone considers its employees to be one of its most important
assets. GP has an extensive employee benefit scheme in place including
Gratuity, Provident Fund, Group Insurance, Family Health Insurance,
Transportation Facility, Day Care Centre, Children's Education Support,
Higher Education Support for employees, in-house medical support and other
initiatives.

What was the Process For IPO of Grameen

phone Ltd:

Grameen phone Ltd. Have issued 69,439,400 ordinary shares at taka 10.00
each at an issue price of taka 70.00 per share, including a premium of taka
60.00 per share, totaling taka 4,860,758,000. Issue manager for the IPO was
Citigroup Global Markets Bangladesh Privet Limited. Underwriters for the IPO
was Citigroup Global Markets Bangladesh Privet Limited, IFIC Bank Limited,
Eastern Bank Limited, The City Bank limited, Green Delta insurance Limited
Co. Ltd., Trust Bank Limited, IDLC Finance Limited. Sixteen banks perform as
bankers to the issue of IPO shares. Among them there was IFIC Bank Limited,
Eastern Bank Limited, The City Bank limited, Trust Bank Limited, One Bank
limited, Standard Chartered Bank, BRAC bank Ltd., and many others. The
companies have credit rating on the time of IPO AAA for the long term And
ST-1 for the short term. It was rated by Credit Rating Agency of Bangladesh.
Grameen phone got SEC consent on august 24, 2009. After that they issue
their prospectus on august 26, 2009. Opening date of subscription was
October 4, 2009 and closing date for subscription was October 8, 2009. For
NBR’s these dates were October 4 and October 18 respectively. After that
they use lottery to select share holders. Market trade lot of the share was
200. The listing date of the company both DSE and CSE was November 11,
2009. And the first trading date of the company was November 16, 2009.

Some Important Data about GP IPO

Nature of Business Grameen phone Ltd. is the largest mobile
telecommunications operator in Bangladesh
Subscription Open 4-Oct-09
Subscription Close 8-Oct-09
For Nonresident October 4, 2009 to October 18, 2009
Bangladeshi
Listing Date 11-Nov-09
Trading Date 16-Nov-09
Offer Price (Tk.) 70
Face Value (Tk.) 10
Market lot (Share) 200
Sponsors Portion 1,215,174,797
(Share)
Sponsors Portion 12,151,747,970.00
(Tk.)
Public Offering :
IPO (Shares) 69,439,400
Private Placement 65,685,800
(shares)
Post IPO Paid-up Tk. 13,502,999,970.00
capital
Reason for IPO: Repayment of overdraft facilities, Network
 expansion, IT & General and Capital
expenditure.
Earnings per share as Tk.2.46 (considering face value of Tk. 10.00)
on 31.12.08 (as per
prospectus)
NAV per share (as per Tk.22.70
prospectus)
Manager to the Issue Citigroup Global Markets Bangladesh Private
Limited
Website www.grameenphone.com

Week Wise Analysis of Share Price:

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
16.11.20 195 160 177.3 7430400
09
17.11.20 186 170.1 171.1 2832800
09
18.11.20 170.2 158 158.2 2732000
09
 19.11.20 167.9 152 164 1627200
09

For the first week, the share was traded for four days. The highest price of
the week was Tk. 195 and the lowest price of the week Tk. 152. The closing
share price goes down all through the week except the last day. If we look at
the no. of share traded then we see that it decrease a lot all though the
week. So there was a lot of supply of share but fewer buyer. That’s why
share price may be goes down. But at the last day when price already goes
down, then supply of share may be goes down that’s why share price goes
up.

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
22.11.20 168.9 163 165.7 872400
09
23.11.20 170 164.1 168.5 1091600
09
 24.11.20 177 168.8 174.8 1321800
09
25.11.20 180 175.9 179.3 1232000
09
26.11.20 182 178 180 1126800
09

For this week, the share was traded for all five days. The highest price of the
week was Tk. 182 and the lowest price of the week Tk. 163. So this week in
term of lowest price, this share’s price improves a lot than last week. Now if
you look at the closing share price then it improved a lot all through week.
And the no. of share traded improves a lot. From the figures on trade it may
be say that may be demand was higher that the supply of the share of the
company. So share price goes up.

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
 1.12.20 182.9 177 177.3 1112600
09
2.12.20 177.5 174.2 174.7 921600
09
3.12.20 175.4 172.4 173.6 773200
09

For this week, the share was traded for three days. The highest price of the
week was Tk. 182.9 and the lowest price of the week Tk. 172.4. So this week
in term of lowest price, this share’s price improves a lot than last week. Now
if you look at the closing share price then it goes down all through the week.
But it doesn’t go down too much. And the no. of share traded also goes
down. From the figures on trade it may be say that may be last week’s high
price increase the supply of share that’s compare to demand, so share price
goes down.
 DATE Highest Lowest Closing No. of Share
Price Price Price Traded
6.12.200 176 171.5 171.8 796200
9
7.12.200 173.8 170 170.1 752800
9
8.12.200 171.2 168.6 169.49 555000
9
9.12.200 173.9 169 170.7 718200
9
10.12.20 172 167.8 169.2 924400
09

For this week, the share was traded for all five days. The highest price of the
week was Tk. 176 and the lowest price of the week Tk. 167.8. So this week in
term of highest and lowest price, this share’s price decrease a lot than last
week. Now if you look at the closing share price then it goes down all
through the week. But it doesn’t go down too much. And the no. of share
traded also goes down. So it may be sat that the supply and demand was the
reason behind this.
 DATE Highest Lowest Closing No. of Share
Price Price Price Traded
13.12.20 173 168 171.6 813600
09
14.12.20 178.2 172 176 1002600
09
15.12.20 179 172.3 172.8 745000
09
17.12.20 174 170.5 171.1 424400
09

This week share was traded for four days. Highest price for the weak was tk.
179 and the lowest price of the share was tk. 168. The closing daily price
increases a lot at the second day but began to fall thereafter. On the second
day no. of share traded was really high may be demand was really high
that’s why may the share price become so high that day. High price may be
influenced many share holder to sell the share that’s why share price goes
down after that day.
 DATE Highest Lowest Closing No. of Share
Price Price Price Traded
20.12.20 171.9 170 170.1 626400
09
21.12.20 171.9 169.7 170.8 550000
09
22.12.20 178 171 176.7 1074600
09
23.12.20 181.4 177 180.2 1776600
09
24.12.20 183.8 179.4 182.5 1584200
09

This week share was traded for all five days. The highest price of the week
was 183.8 and the lowest price of the week was 169.7. the spread between
the highest and the lowest price of the week become large than last week so
the price fluctuate too much this week. But closing prices of this week goes
up as the week progresses. But figures of no. of share traded was really hard
too relate with the closing price.
 DATE Highest Lowest Closing No. of Share
Price Price Price Traded
27.12.20 190 183.5 189.7 1863600
09
29.12.20 194.9 188.2 188.6 1420400
09
30.12.20 190 186.4 187.5 1442400
09

This week share was traded for just three days. Highest price of the share
was tk. 194.9 and lowest price of the share was tk. 183.5. both the highest
and lowest price improves lot in this week. Same effect has been seen over
the daily closing price. But it decreases all through the week. No. of share
traded also increased than last week. But it also fall down with the price as
the week progress. It may be happen because of last week’s trend of price
increase. May be at the beginning of the week demand of share was too high
and supply increase a lot because of high demand, so share price increase
and then goes down.
 DATE Highest Lowest Closing No. of Share
Price Price Price Traded
3.1.201 192.3 187 189.3 962200
0
4.1.201 198.9 190 197.9 2749600
0
5.1.201 202 195.2 196.5 2061800
0
6.1.201 197.8 195 196.4 1436200
0
7.1.201 197 193.5 193.8 1259600
0

This week share has been traded for five days. The movement of price in this
week was too high. Highest price of this week was tk. 202 and the lowest
price was tk. 187. So in terms of highest and lowest price market improves a
lot than last week. But the closing share price and no. of share traded
fluctuate a lot in this week.

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
10.1.20 197.4 190.2 192.3 1605400
10
11.1.20 197.4 192.8 196.8 1784800
10
12.1.20 207 197.4 206 5308600
10
13.1.20 209 197.6 201.2 2952200
10
14.1.20 213.9 203 211.7 3507000
10

This week share was traded for five days. Highest price of the week was tk.
213.9 and the lowest price was tk. 190.2. Again the highest and lowest price
improves lot. This week share price was not that much fluctuating like last
week, more or less it increased this week. No. of share traded increased a lot
this week but figures fluctuate a lot this week.

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
17.1.20 215 210.2 211 3133200
10
18.1.20 219.9 209.2 219.5 3351800
10
20.1.20 227.9 222.5 226.9 2603800
10
21.1.20 244.9 227.5 244.4 5070200
10
This week share has been traded for four days. Highest price of the week
was tk. 244.9 and the lowest price of the week was tk. 209.2. Highest and
lowest price improves a lot in this week. But the spread between highest and
lowest price become too high. So volatility of the share becomes too much
volatile. But the good thing is that there was an increasing trend in closing
share price. Also in no. of share traded.

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
24.1.20 254.9 236 252.6 3997200
10
25.1.20 288 251 278.4 4675000
10
26.1.20 275 238.5 255 4564600
10
27.1.20 264 250 259 2219400
10
28.1.20 275 259 272.1 2761600
10
This week share has been traded for five days. Highest price of the week was
tk. 288 and the lowest price of the share was tk. 236. So volatility among
price becomes too much high. It indicates risky trade. Closing price of the
share for each day was too much volatile. And the no. of share traded also
fluctuates a lot all through the week.

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
31.1.20 274.9 265 266.9 2327600
10
1.2.201 280 265.2 279.4 3569600
0
2.2.201 290 270 286.8 2825600
0
3.2.201 300 285.1 287.3 4040200
0
4.2.201 296 282.5 290.9 3093600
0
This week share has been traded for five days. Highest price was tk. 300 and
the lowest price was tk. 265. So the market of this share is still volatile a lot.
But the closing price increased a lot all through the week. But the no. of
share traded was really volatile.

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
7.2.201 296.9 290 292.6 1584200
0
8.2.201 312 294.1 310.6 5377000
0
9.2.201 324.9 297 319.6 5672800
0
10.2.20 323 310 314 1622400
10
11.2.20 316.1 300.1 312 1972400
10

This week share has been traded for five days. The highest price of the week
was tk. 324.9 and the lowest price of the week was tk. 290. So difference
between highest and lowest price become little bit smaller this week. But the
closing price increased for first three days but for last two days it decreased
lot. But no. of share traded fluctuates a lot in this week.

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
14.2.20 337.5 308.8 333.9 1916000
10
15.2.20 352.8 336 344.3 2624000
10
16.2.20 365 342.2 360.4 1959800
10
17.2.20 395 364.5 385.4 2973800
10
18.2.20 380.1 350 361.2 2612400
10

This week share has been traded for five days. Highest price was tk. 395 and
the lowest price was tk. 308.8. So market condition was really risky for this
week. That why may be the closing market price increased lot the decreased
at the end of last week. No. of share trade was also very much volatile all
through the week.

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
22.2.20 361 310 332.6 1207400
10
23.2.20 345 323.1 341.8 1359800
10
24.2.20 368.8 346.9 366.5 1517000
10
25.2.20 380 366 369.3 1501000
10

This week share has been traded for four days. Highest price was tk. 380 and
the lowest price was tk. 310. So market condition was really risky for this
week. That why may be the closing market price increased lot. No. of share
trade was also very much volatile all through the week. Volume of share was
low compare to last week. So people also fill it risky to trade share.
Month Wise Analysis of Share Price:

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
16.11.20 195 160 177.3 7430400
09
17.11.20 186 170.1 171.1 2832800
09
18.11.20 170.2 158 158.2 2732000
09
19.11.20 167.9 152 164 1627200
09
22.11.20 168.9 163 165.7 872400
09
23.11.20 170 164.1 168.5 1091600
09
 24.11.20 177 168.8 174.8 1321800
09
25.11.20 180 175.9 179.3 1232000
09
26.11.20 182 178 180 1126800
09

This month share has been traded for nine days. The highest price of the
share was 195 and the lowest price of the share was 152. So there is
volatility in the market. Closing share price don’t have any particular trend.
But first few days it decreased a lot then turn to increase. No. of share traded
was highest at the first day but later on it fluctuate a lot.

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
1.12.200 182.9 177 177.3 1112600
9
2.12.200 177.5 174.2 174.7 921600
9
3.12.200 175.4 172.4 173.6 773200
9
6.12.200 176 171.5 171.8 796200
9
7.12.200 173.8 170 170.1 752800
9
8.12.200 171.2 168.6 169.49 555000
9
 9.12.200 173.9 169 170.7 718200
9
10.12.20 172 167.8 169.2 924400
09
13.12.20 173 168 171.6 813600
09
14.12.20 178.2 172 176 1002600
09
15.12.20 179 172.3 172.8 745000
09
17.12.20 174 170.5 171.1 424400
09
20.12.20 171.9 170 170.1 626400
09
21.12.20 171.9 169.7 170.8 550000
09
22.12.20 178 171 176.7 1074600
09
23.12.20 181.4 177 180.2 1776600
09
24.12.20 183.8 179.4 182.5 1584200
09
27.12.20 190 183.5 189.7 1863600
09
29.12.20 194.9 188.2 188.6 1420400
09
30.12.20 190 186.4 187.5 1442400
09

This month share has been traded for twenty days. Highest price of the
month was tk. 194.9 and the lowest price was tk. 167.8. Closing share price
decrease in first few days after that there was no particular trend in closing
share price and after that closing share price turn back and goes up. But no
of share traded was not any kind of trend.
DATE Highest Lowest Closing No. of Share
Price Price Price Traded
3.1.201 192.3 187 189.3 962200
0
4.1.201 198.9 190 197.9 2749600
0
5.1.201 202 195.2 196.5 2061800
0
6.1.201 197.8 195 196.4 1436200
0
7.1.201 197 193.5 193.8 1259600
0
10.1.20 197.4 190.2 192.3 1605400
10
11.1.20 197.4 192.8 196.8 1784800
10
12.1.20 207 197.4 206 5308600
10
13.1.20 209 197.6 201.2 2952200
10
14.1.20 213.9 203 211.7 3507000
10
17.1.20 215 210.2 211 3133200
10
18.1.20 219.9 209.2 219.5 3351800
10
20.1.20 227.9 222.5 226.9 2603800
10
21.1.20 244.9 227.5 244.4 5070200
10
 24.1.20 254.9 236 252.6 3997200
10
25.1.20 288 251 278.4 4675000
10
26.1.20 275 238.5 255 4564600
10
27.1.20 264 250 259 2219400
10
28.1.20 275 259 272.1 2761600
10
31.1.20 274.9 265 266.9 2327600
10
This month share has been traded for twenty days. Highest price of the
month was tk. 274.9 and the lowest price was tk. 187. This rage was really
big so share price fluctuation indicates high risk. Closing share price
decrease in first few days after that there was no particular trend in closing
share price and after that closing share price turn back and goes up. But no
of share traded was not any kind of trend.

DATE Highest Lowest Closing No. of Share

Price Price Price Traded
1.2.201 280 265.2 279.4 3569600
0
2.2.201 290 270 286.8 2825600
0
3.2.201 300 285.1 287.3 4040200
0
 4.2.201 296 282.5 290.9 3093600
0
7.2.201 296.9 290 292.6 1584200
0
8.2.201 312 294.1 310.6 5377000
0
9.2.201 324.9 297 319.6 5672800
0
10.2.20 323 310 314 1622400
10
11.2.20 316.1 300.1 312 1972400
10
14.2.20 337.5 308.8 333.9 1916000
10
15.2.20 352.8 336 344.3 2624000
10
16.2.20 365 342.2 360.4 1959800
10
17.2.20 395 364.5 385.4 2973800
10
18.2.20 380.1 350 361.2 2612400
10
22.2.20 361 310 332.6 1207400
10
23.2.20 345 323.1 341.8 1359800
10
24.2.20 368.8 346.9 366.5 1517000
10
25.2.20 380 366 369.3 1501000
10
28.2.20 374.8 353.5 355.3 1510800
10
This month share has been traded for nineteen days. Highest price of the
month was tk. 395 and the lowest price was tk. 265.2. This rage was really
big so share price fluctuation indicates high risk. Closing share price
increase in first few days after that there decreasing trend in closing share
price then again a increasing trend for few days and after that closing share
price goes down. But no of share traded was not any kind of trend.

Conclusion:
From the weekly analysis of the share price we found that there was no trend
among the weekly price movement, in one week share price goes up, in
another week share price goes down. From the monthly analysis we found
that in the first two month share price was really volatile. There was no kind
of stability in the market. But as the months are progressed, share price is
going toward stability. But Price earning ratio of the company is also getting
higher. That indicates a high risk in the market of this share price and this
share price movement also affects the overall market index in a significant
amount.