DAM Capital Advisors, a leading financial services advisory firm, is set to launch its Initial Public Offering (IPO), offering investors a chance to participate in the growth of a prominent player in the capital markets sector. With a strong reputation for delivering strategic financial solutions, DAM Capital Advisors has established itself as a trusted name in investment banking, wealth management and securities trading.
The upcoming IPO marks a significant milestone in the company’s journey, providing an exciting opportunity for investors to tap into its promising growth prospects as it continues to expand its market presence and enhance its service offerings.
In this article, we will take a closer look at DAM Capital Advisors, its market potential and what investors can expect from this highly anticipated IPO.
Table of Contents
DAM Capital Advisors IPO Details
DAM Capital Advisors IPO is a book-built issue valued at ₹840.25 crore and is entirely an offer for sale (OFS). This means that the proceeds from the issue will not be directed to the company, but will instead be used to provide an exit for the existing shareholders.
The IPO of DAM Capital Advisors will open for subscription on Thursday, December 19, 2024 and close on Monday, December 23, 2024. The allotment is expected to be finalized on Tuesday, December 24, 2024 with a tentative listing date on the stock exchanges set for Friday, December 27, 2024. The price band for DAM Capital Advisors shares has been fixed at ₹269 to ₹283 per share.
| IPO Name | DAM Capital Advisors Limited |
| IPO Open Date | 19 December 2024 |
| IPO Close Date | 23 December 2024 |
| Price Band | ₹269 to ₹283 per share |
| Lot Size | 53 shares |
| Face Value | ₹2 per share |
| Total-Issue Size | 2,96,90,900 shares (aggregating up to ₹840.25 Cr) |
| Offer for Sale | 2,96,90,900 shares of ₹2 (aggregating up to ₹840.25 Cr) |
| Share Holding Pre Issue | 7,06,86,000 shares |
| Share Holding Post Issue | 7,06,86,000 shares |
| Share Allotment Date | 24 December 2024 |
| Initiation of Refund | 26 December 2024 |
| Credit of Shares to Demat | 26 December 2024 |
| Listing Date | 27 December 2024 |
| UPI Cut Off Time | 23 December 2024 – 5 P.M. |
| Listing Exchange Name | BSE, NSE |
| Lead Manager(s) of Issue | Nuvama Wealth Management Limited |
| Registrar of Issue | Link Intime India Private Limited |
For detailed information, you can refer to DAM Capital Advisors IPO RHP.
DAM Capital Advisors IPO GMP
Prior to its opening, the IPO has received a positive response in the unlisted market, where it is currently trading at a premium of approximately 38%. The latest DAM Capital Advisors IPO GMP stands at ₹108, indicating an estimated listing price of ₹391.
Check IPO Live GMP: View now for Real-Time Updates
DAM Capital Advisors IPO Lot Size
DAM Capital Advisors Limited has issued 2,96,90,900 shares worth ₹840.25 Cr for the offer for sale issue. The minimum lot size for an application is 1 lot (53 shares) and the minimum amount of investment required by retail investors is ₹14,999.
The minimum lot size investment for s-HNI (Small High Net Worth Individual) is 14 lots (742 shares), amounting to ₹2,09,986, while the maximum is 66 lots (3,498 shares), amounting to ₹9,89,934.
For b-HNI (Big High Net Worth Individual), the minimum lot size is 67 lots (3,551 shares) amounting to ₹10,04,933.
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Min) | 1 | 53 | ₹14,999 |
| Retail(Max) | 13 | 689 | ₹1,94,987 |
| s-HNI(Min) | 14 | 742 | ₹2,09,986 |
| s-HNI(Max) | 66 | 3,498 | ₹9,89,934 |
| b-HNI(Min) | 67 | 3,551 | ₹10,04,933 |
DAM Capital Advisors IPO Reservation Details
Below are the limits for the shares offered in the different investor categories for this IPO:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net Issue |
| Retail Shares Offered | Not less than 35.00% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Issue |
Category Reservation Details
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Only RII (Retail) | Up to ₹2 lakhs | Yes |
| Only s-NII | ₹2 lakhs to 10 lakhs | No |
| Only b-NII | ₹10 lakhs to NII Reservation Portion | No |
| Only employee | Up to ₹5 lakhs | Yes |
| Employee + RII/NII | Employee limit: Up to ₹5 lakhs (In certain cases, employees are given a discount if the bidding amount is up to ₹2 lakhs) If applying as RII: Up to ₹2 lakhs If applying as NII: sNII > ₹2 lakhs and up to ₹10 lakhs and bNII > ₹10 lakhs | Yes for shareholder/RII |
About the Company
That concludes the details of this IPO. Now, let’s shift our focus to explore more about the company’s background, operations, strengths and risks, financial statements and key highlights.
DAM Capital Advisors Limited is a leading investment banking firm in India. Founded in 1993, the company rebranded as DAM Capital in 2020 with a subsidiary in the USA. The company offers a wide range of financial solutions including investment banking services like equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE) and structured finance advisory. Additionally, the company provides institutional equities services such as broking and research.
DAM Capital has completed over 72 equity capital market (ECM) transactions, including 26 initial public offerings (IPOs), 15 qualified institutions placements (QIPs), 5 offers-for-sale (OFS), 6 preferential issues, 3 rights issues, 7 buybacks, 4 open offers and 1 IPO of units by a real estate investment trust (REIT) and the firm has provided advisory services for 23 transactions, including M&A, private equity (PE), and structured finance, along with executing block trades since the acquisition from November 7, 2019 till October 31, 2024.
The company’s institutional equities business serves 257 active clients including registered foreign portfolio investors (FPIs) from diverse regions such as India, the USA, the UK, Europe, Hong Kong, Singapore, Australia, Taiwan, South Korea, the Middle East and South Africa.
DAM Capital claims to have strong relationships with institutional investors, financial sponsors, corporates and family offices. The company believes that this is because of the experienced team members and consistent client engagement, which has led to repeat business from many clients.
Competitive Strengths:
- Proven Expertise: With over 72 ECM transactions and 23 advisory deals completed since 2019, DAM Capital Advisors has established itself as a trusted partner for corporate clients.
- Global Clientele: Serving clients across 11 countries, the company’s international footprint ensures diversified revenue streams and global brand recognition.
- Experienced Management: Led by Mr. Dharmesh Anil Mehta and supported by a skilled team of 121 employees, the company benefits from strong leadership and a dedicated workforce.
- Strategic Focus: DAM Capital Advisors focuses on high-growth areas like private equity advisory and institutional broking, ensuring sustained growth and profitability.
Objectives of DAM Capital Advisors IPO
Since the IPO is entirely an offer for sale therefore the company will not receive any proceeds from the Offer (referred to as the “Offer Proceeds”). All Offer Proceeds, after deducting offer-related expenses, will be received by the selling shareholders, who will bear these expenses.
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DAM Capital Advisors Limited Financial Information (Restated Consolidated)
DAM Capital Advisors Limited’s revenue increased by 114% and profit after tax (PAT) rose by 713% in the FY 2023-24 (April 1, 2023 to March 31, 2024).
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 |
| Assets | 166.72 | 1,201.16 | 214.68 |
| Revenue | 94.51 | 85.04 | 182 |
| Profit after Tax | 21.9 | 8.67 | 70.52 |
| Net Worth | 87.97 | 95.13 | 162.61 |
| Reserves & Surplus | 73.84 | 80.99 | 148.47 |
| Total Debt | 1.41 | 3.29 | 4.93 |
| Amt in ₹ Crore |
Key Performance Indicators
DAM Capital Advisors Limited has a market capitalization of ₹2000.41 crore. As of March 31, 2024, the company’s key performance indicators (KPIs) include an impressive Return on Equity (ROE) of 54.72% and profit after tax (PAT) margin of 8.73%.
| Key Performance Indicators | Value |
|---|---|
| ROE | 54.72% |
| RoNW | 44.98% |
| Price to Book Value | 12.76 |
| PAT Margin (%) | 38.75 |
The EPS and PE ratios before and after the DAM Capital Advisors IPO issue are detailed in the list below:
| Ratios | Pre IPO | Post IPO |
| EPS (Rs.) | 9.98 | 9.98 |
| P/E (x) | 28.37 | 28.37 |
- The Pre-IPO EPS is calculated using the pre-issue shareholding as of the RHP date and the most recent fiscal year earnings available as of March 31, 2024, as disclosed in the RHP.
- The Post-IPO EPS is calculated using the post-issue shareholding and the annualized earnings for the fiscal year ending March 31, 2024, as provided in the RHP.
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DAM Capital Advisors IPO Review (Apply)
The review of the DAM Capital Advisors IPO has been done based on the following points:
- Revenue Growth: DAM Capital Advisors has demonstrated impressive financial growth, with its revenue rising to ₹182 crore in FY2024, doubling from FY2022. This highlights consistent growth and a robust market presence.
- Profit Growth: The profit after tax (PAT) has surged by 713%, reaching ₹70.52 crore in FY2024, compared to FY2022. With a PAT margin of 38.75%, the company demonstrates strong profitability, which is impressive for the finance sector.
- Strong Reserves: Reserves have grown from ₹73.84 crore (2022) to ₹148.47 crore (2024), indicating the company’s ability to reinvest for business expansion.
- Valuation Metrics: P/E: 28.37
The IPO appears to be overvalued, as the average P/E ratio for the finance sector is approximately 17x while the company’s current PE is 28.37.
- Return on Equity (ROE) and Return on Net Worth (RoNW):
ROE: 54.72% reflects the profitability relative to shareholders’ equity.
RoNW: 44.98% is extremely good for long-term investors.
- GMP and IPO Price Band: With a price band of ₹269 – ₹283 and a GMP of ₹108, the market shows a great interest, suggesting a potential listing gain of around 38%.
Strengths
- Comprehensive Service Portfolio: DAM Capital Advisors operates as a diversified financial services firm through two key divisions. Their investment banking arm provides ECM, M&A advisory, private equity and structured finance solutions, while their institutional equities division delivers specialized broking and research services for institutional investors. This dual-segment approach helps maintain stable revenue streams across different market conditions.
- Strong Transaction Track Record: Since its acquisition in 2019, DAM Capital Advisors has executed over 72 ECM transactions, including 27 IPOs, 16 Qualified Institutional Placements (QIPs), and 6 offers for sale. Additionally, it has advised on 23 transactions in M&A and private equity, demonstrating its leadership in India’s financial markets.
- Global Client Base: The company’s institutional equities division serves 263 active clients, including FPIs, across India, the USA, the UK, Europe, and Asia. This global footprint ensures a steady revenue stream and diversified risk.
- Experienced and Strong Leadership: With a team of seasoned professionals, DAM Capital Advisors combines strategic foresight with deep industry expertise, making it a trusted partner for clients and investors alike.
Risks
Here are some of the risk factors involved in the IPO that investors should know before subscribing to the issue. These risk factors have been highlighted by the company in its Red Herring Prospectus (RHP):
- Highly Regulated Sector: The company operates in a highly regulated environment. Therefore, any adverse changes in laws, regulations, and government policies could negatively impact its business operations and finances.
- Dependence on IT systems: The company relies heavily on its IT systems to efficiently record and process large volumes of transactions daily. Any failure or inadequacy in these systems could disrupt operations and negatively affect the client experience, impacting overall business performance.
- Revenue concentrated on Advisory fee and Brokerage: A significant portion of the company’s revenue is derived from advisory fee income and brokerage services. Advisory fees contributed ₹61.11 crore (64.67%), ₹52.29 crore (61.49%) and ₹124.36 crore (68.33%) to the revenue from operations in FY22, FY23 and FY24 respectively, while brokerage contributed ₹30.24 crore (32.00%), ₹29.15 crore (34.28%) and ₹49.47 crore (27.18%) to the revenue from operations in FY22, FY23 and FY24 respectively. These revenue streams are susceptible to macroeconomic conditions. Any adverse developments in the macroeconomic conditions could adversely impact the two revenue streams, which could be detrimental to the company’s operations and financial performance.
All the above-mentioned risks should be considered by investors before deciding to invest in the IPO.
Opinion
Given the company’s financial growth, strong fundamentals and high listing gain potential, the IPO appears attractive and therefore you can apply for both listing gains and investment. However, right now considering peers of this company, the valuation seems to be overvalued, therefore you can go through the points mentioned below:
- For Long-Term Investors: Based on the annualized earnings for FY25, the issue seems fully priced. However, given its market appeal, investors may consider allocating funds for the medium to long term.
- For Short-Term Investors: Short-term traders or investors should pay attention to the GMP trend on the listing day for any short-term gains, which look really good as of now with a 38% return on the listing date.
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Additional Details
Promoter Holding
Mr. Dharmesh Anil Mehta, Ms. Sonali Dharmesh Mehta and Boombucket Advisors Private Limited are the promoters of the company. Their shareholding before and after the issue is as follows:
| Pre Issue Shareholding | 45.88% |
| Post Issue Shareholding |
DAM Capital Advisors IPO Allotment Status: Check Now
DAM Capital Advisors Limited Contact Details
Address: PG-1, Ground Floor, Rotunda Building, Dalal Street, Fort, Mumbai – 400001
Phone: +91-2242022500
Email: [email protected]
Website: https://www.damcapital.in/
DAM Capital Advisors IPO Registrar Details
Registrar: Link Intime India Private Limited
Address: C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: [email protected]
Website: https://linkintime.co.in/Initial_Offer/public-issues.html
Disclaimer: This article is written solely for educational purposes and should not be interpreted as investment advice or recommendations. The stock market involves significant risks, so we encourage you to seek guidance from a financial advisor before making any investment decisions.
FAQs
Q1. What is DAM Capital Advisors IPO?
DAM Capital Advisors IPO is an offer for sale issue, where the company aims to raise ₹840.25 crore through this IPO.
Q2. What is the price band of DAM Capital Advisors IPO?
The price band of this IPO has been fixed at ₹269 to ₹283 per share. This price range presents a good opportunity for investors.
Q3. What are the important dates for DAM Capital Advisors IPO?
The IPO opens on 19 December 2024 and closes on 23 December 2024. The listing of shares will take place on 27 December 2024 on NSE and BSE.
Q4. How many shares are being offered in the DAM Capital Advisors IPO?
A total of 2,96,90,900 shares are being offered in the company’s IPO. These shares are entirely part of the offer for sale issue, meaning the company is providing the exit to the existing shareholders.
Q5. What is the lot size of DAM Capital Advisors IPO?
The lot size of the DAM Capital Advisors IPO is 53 shares.
Q6. How can I apply for DAM Capital Advisors IPO?
You can apply for the DAM Capital Advisors IPO online. The application can be made via UPI and the deadline for submission is 23 December 2024.
Q7. What is the expected listing gain for DAM Capital Advisors IPO?
The Grey Market Premium (GMP) of DAM Capital Advisors IPO has reached ₹108, indicating an expected listing gain of around 38%.
Q8. Who is the lead manager of DAM Capital Advisors IPO?
The lead manager of this IPO is Nuvama Wealth Management Limited.
Q9. What is the business model of DAM Capital Advisors?
DAM Capital Advisors is an investment banking company that offers investment banking solutions including equity capital markets.
