DAM Capital Advisors Limited, a prominent investment bank, is set to launch its initial public offering (IPO) from December 19 to December 23, 2024. The offering, entirely an offer-for-sale of 2.97 crore shares, allows existing shareholders to monetize their holdings. The price band has been set between ₹269 to ₹283 per share and the lot size is 53 shares. The minimum investment commitment for retail investors is ₹14,999 with 14 lots. The allotment of shares is expected on December 24, with the listing tentatively scheduled for December 27, 2024, on both the BSE and NSE.
The IPO has generated interest among investors eager to capitalize on the growth of India's financial services sector. DAM Capital’s reputation for managing high-profile equity offerings adds to its appeal. This IPO provides an opportunity to participate in the success of a well-established player in the country’s burgeoning capital markets.
DAM Capital Advisors Systems IPO is an offer for sale of 2.97 crore shares. The IPO will be available for subscription from December 19, 2024, to December 23, 2024, providing an opportunity for investors looking to gain a stake in the financial sector.
| DAM Capital Advisors IPO Date | December 19, 2024 - December 23, 2024 |
| Price Band | ₹269 to ₹283 per share |
| Face Value | ₹2 per share |
| Lot Size | 53 shares |
| Issue Type | Book-built issue |
| Offer for Sale | 2,96,90,900 shares of ₹2 per share |
| Total Issue Size | 2,96,90,900 shares of ₹2 per share |
| Listing at | BSE, NSE |
| Share Holding Post Issue | 7,06,86,000 |
| Share Holding Pre Issue | 7,06,86,000 |
The DAM Capital Advisors IPO opens for subscription on December 19, 2024, and closes on December 23, 2024, with allotment slated for December 24, 2024.
| IPO Open Date | December 19, 2024 (Thursday) |
| IPO Close Date | December 23, 2024 (Monday) |
| Basis of Allotment | December 24, 2024 (Tuesday) |
| Initiation of Refunds | December 26, 2024 (Thursday) |
| Credit of Shares to Demat Account | December 26, 2024 (Thursday) |
| Listing Date on Exchanges | December 27, 2024 (Friday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 23, 2024 (Monday) |
DAM Capital Advisors Limited is a robust Indian investment bank with a comprehensive financial services portfolio. Established in 1993 and previously part of the IDFC group, the company was acquired by Dharmesh Anil Mehta and other investors in 2019, subsequently rebranding as DAM Capital Advisors Limited. The firm offers extensive services across investment banking and institutional equities, including equity capital markets, mergers and acquisitions, private equity, structured finance advisory, broking, and research.
With a proven track record, the company has successfully executed 72 equity capital market transactions and advised on 23 advisory transactions since November 2019. As of October 31, 2024, DAM Capital employs 121 professionals across its businesses, serves 263 active clients spanning multiple international geographies, and has a wholly-owned subsidiary, DAM Capital (USA) Inc., registered as a Broker-Dealer with the Securities and Exchange Commission. This diverse operational footprint and extensive service range position the firm as a significant player in the Indian financial services landscape.
The company will not receive any of the proceeds of the IPO. The funds will go to the selling shareholders.
DAM Capital Advisors IPO saw its revenue grow 114% and Profit After Tax (PAT) increase by 713% on an annual basis during the financial year ending March 31, 2024.
Key performance indicators reflect the company's financial health, with Return on Equity (RoE) at 54.72%, Return on Net Worth (RoNW) at 44.98%, while the PAT Margin is 38.75.
| Period Ended | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 182 | 85.04 | 94.51 |
| Assets | 214.68 | 1201.16 | 166.72 |
| Net Worth | 162.61 | 95.13 | 87.97 |
| Profit After Tax | 70.52 | 8.67 | 21.9 |
| Total Borrowing | 4.93 | 3.29 | 1.41 |
| Reserves & Surplus | 148.47 | 80.99 | 73.84 |
Amount in ₹ crores
Strengths of DAM Capital Advisors Limited center on its remarkable growth trajectory and competitive market positioning. The company stands out as the fastest-growing merchant bank in India, with an impressive revenue CAGR from fiscal 2022 to 2024 and the highest profit margin among major peers in fiscal 2024. Its strengths include a 12.1% market share in IPOs/QIPs, a diverse service portfolio spanning equity capital markets, mergers and acquisitions, structured finance, and institutional equities, and a robust research capability covering 161 companies across 20 sectors.
The firm has cultivated long-standing relationships with institutional investors, financial sponsors, corporates, and family offices, leveraging an experienced team that generates consistent repeat business and has been trusted with significant transactions like the Glenmark Life Sciences and Sterling and Wilson Solar acquisitions.
The company faces notable challenges inherent to the financial services sector. DAM Capital operates in a highly regulated environment susceptible to changes in laws, policies, and economic conditions, which can significantly impact its business model. The firm's dependence on maintaining various licenses and permits creates operational risks, with any failure or delay in obtaining renewals potentially adversely affecting its financial performance.
Additionally, the company shows vulnerability through its high dependence on IPOs and QIP markets, limited global reach primarily focused on India, smaller research and broking teams compared to larger competitors, and a business model heavily reliant on key professional talent. The stock broking segment has historically incurred losses, and any further reduction in brokerage fees could materially impact the company's operational cash flows.
Investing in an initial public offering (IPO) presents a unique opportunity to participate in a company's growth from its early stages of public trading. The DAM Capital Advisors Limited IPO stands out as a compelling investment prospect, offering potential investors the chance to be part of the company's financial journey. While the allure of early investment is strong, prudent decision-making requires a comprehensive evaluation of the opportunity.
Prospective investors should conduct meticulous research, carefully analyzing the company's financial fundamentals, current market dynamics, and individual investment objectives. A thorough due diligence process is essential to determine whether this IPO aligns with your personal financial goals and risk appetite. Consider factors such as the company's financial performance, market position, growth potential, and the broader economic landscape before making an investment decision.
What is the DAM Capital Advisors IPO?
The DAM Capital Advisors Limited IPO is a main-board offer for sale consisting of 2.97 crore equity shares with a face value of ₹2. The price band has been set between ₹269 to ₹283 per share and the lot size is 53 shares. This IPO will be open for subscription from December 19, 2024, to December 23, 2024. Link Intime India Private Limited is the registrar while Nuvama Wealth Management Limited is the book-running lead manager.
When will the DAM Capital Advisors Limited IPO open?
The DAM Capital Advisors Limited IPO will open for subscription on December 19, 2024, and will close on December 23, 2024.
When is the DAM Capital Advisors Limited IPO listing date?
The tentative listing date for the DAM Capital Advisors Limited IPO is Friday, December 27, 2024.
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