Royal Capital Ltd is offering you the best opportunity for learning the basics of investment. Yes! We are offering you a platform where you can learn about the initial investment strategies and gain knowledge about the capital market and financial industry. For beginners and new investors, this is the starting of proper investment guidance that will help you make better financial decisions in the future. Our expert team has prepared study materials and training courses that are capable of making you an informed individual about the basics of the stock market. Join our sessions and study our materials for building a bright investment future all by yourself.
Royal Capital Limited (RCL) started its journey in the capital market of Bangladesh in 1996.
Royal Capital has 15 Branches and 10 Digital Booths around Bangladesh, with our corporate
office located at Dhaka's commercial hub Motijheel. RCL has more than 160 experienced
employees who serve the existing and potential clients with utmost priority.
Our sincere dedication and hard work have earned us an A+ Credit rating from internationally
recognized credit rating agency CRISL. These credentials have allowed us to be the country's
most compliant and preferred stockbroker.
|Branches||Royal Capital Branches||Royal Capital Digital Booth|
|Dhaka||Hatkhola (Corporate Office), Motijheel, Farmgate, Dhanmondi, Roy Shaheb Bazar, Mirpur, Narayanganj||Kochukhet|
|Chittagong||Agrabad, Extension, Enayet Bazar, Khatunganj, Feni||Fatikchari, Cox’s Bazar, Patiya, Lohagara|
|Khulna||Khulna, Benapole, Jashore||Chuadanga, Jhenaidah|
Most people in Bangladesh prefer to keep their money in bank accounts, but little do
they realize that the money saved in the bank is being eaten up gradually due to the
difference between the bank deposit rate and the inflation rate. When banks offer a
lower interest rate on savings than the inflation rate, risk-averse people can choose to
invest in government securities like savings certificates, treasury bills, treasury bonds
etc. But these types of investments have very long tenure and also do not provide
sufficient returns to hedge against inflation. Besides, these instruments are not rapidly
convertible into cash anytime when needed. So in these circumstances, people can
think of investing in the stock market. But since stocks are very risky investments, the
general public tends to avoid investing in this market.
The general public can look for IPO investment opportunities to minimize these
problems. Investors have always been fond of investing in IPOs as it allows them to buy
the shares of a particular company at a comparatively better price from the primary
market. In addition, the investment in IPO generally offers the highest return in a very
short time compared to any other investment alternative.
Return Comparison for investments other than IPO
IPO Investment Return (Potential and approximate)
These investment instruments either offer a lower rate of interest than the inflation rate or have a very long maturity period, making it difficult to liquidate the investments during emergencies. Whereas IPO investment can offer a minimum 15% net return against a single BO Account and can be liquidated anytime during the trading sessions. According to the latest directives of the Bangladesh Securities and Exchange Commission (BSEC), to apply for an IPO in the stock market, the general investors are required to have a minimum investment of BDT 50,000 (fifty thousand) in the secondary market. Thus following this directive, here is a draft calculation of the minimum return that can be achieved from investing in IPOs each year for better understanding.
|IPO Investment (Tk.)||10,000|
|Secondary Market Investment (Tk.)||55,000|
|Total money he invested||65,000|
|Assumed Rate of Return on Per IPO Application||10%|
|Profit per IPO Application (Tk.)||1000|
|Minimum No. of IPO per year||8|
|Annual Profit from IPO Application (Tk.)||8,000|
|Less: CDBL Charge (Tk.)||450|
|IPO Application Fees- (Tk. 10 * 8 IPOs)||80|
|Total Expenses (Tk.)||530|
|Annual Net Profit from IPO Application (Tk.)||7,470|
|Net Cash Dividend (Tk. 55,000 Secondary Market Investment * 4.3% Post-tax Dividend Yield on average)||2,338|
|Net Profit for the Year (Tk.)||9,808|
|Return on Invested Capital||15.1%|
Hence, investment in IPOs can provide you with a very healthy return at minimal risk compared to any other investment options. Royal Capital Limited provides a service to its clients named “IPO Genie” which automatically subscribes to the ongoing IPOs on behalf of the client’s accounts who subscribes to this service so that they never miss out on such lucrative opportunities of investment.