DAM Capital Advisors IPO: Public Issue Subscribed 4x On Day 2, GMP Hints Strong Listing; Check Details

The initial public offering (IPO) of DAM Capital Advisors, an investment bank, has stirred interest among investors since its launch on December 19, 2024. With a share price range of Rs 269-283 per equity share, the IPO will remain open for subscription until December 23. Here's an in-depth look at the DAM Capital Advisors IPO and its performance so far.

Anchor Investors

On the eve of its IPO, DAM Capital Advisors secured Rs 251 crore from prominent anchor investors. Notable anchor investors include global giants like Nomura, Goldman Sachs, HSBC, and Societe Generale, alongside leading Indian mutual funds such as Nippon India MF, HDFC MF, Kotak MF, and Aditya Birla Sun Life MF.

IPO Details

The public issue consists entirely of an offer-for-sale (OFS) of 2.97 crore equity shares, valued at Rs 840.25 crore at the higher end of the price band. Notably, there is no fresh issuance of shares in this IPO.

The Offer-for-Sale (OFS) includes equity shares being offloaded by the promoter, Dharmesh Anil Mehta, along with key investors such as Multiples Alternate Asset Management, RBL Bank, Easyaccess Financial Services, and Narotam Satyanarayan Sekhsaria.

At the upper end of the price band, the IPO pegs DAM Capital Advisors' market capitalization at approximately Rs 2,000 crore.

Subscription Status

DAM Capital Advisors' IPO saw strong demand from investors on its opening day, with the retail portion subscribed 3.88 times, the non-institutional investors (NII) segment receiving 3.72 times bids, and the employee quota attracting an impressive 6.19 times subscription, while the qualified institutional buyers (QIB) category was subscribed 0.01 times.

By 11:40 am on the second day, DAM Capital Advisors' IPO achieved an overall subscription of 4.08 times, with the retail investors' portion subscribed 5.62 times, non-institutional investors (NII) at 5.81 times, the employee quota receiving 8.39 times bids, and the qualified institutional buyers (QIB) segment subscribed 0.01 times.

Allocation for Investors

The IPO's allocation structure is tailored to attract a diverse investor base, with 50% reserved for qualified institutional buyers (QIBs), 35% allocated to retail investors, and the remaining 15% set aside for non-institutional investors (NIIs).

Growth Story

DAM Capital Advisors, helmed by Dharmesh Anil Mehta, is a significant player in India's investment banking space. As per a Crisil report, the company held a 12.1% market share in FY24, based on the number of IPOs and qualified institutional placements it managed as a book-running lead manager.

DAM Capital Advisors boasts a rich history spanning over three decades, beginning in 1993 as SS Kantilal Ishwarlal Sharebrokers and Investors. In 1994, it rebranded to SS Kantilal Ishwarlal Securities Private Limited (SSKIPL). Between 2006 and 2008, the company was acquired by the IDFC group, solidifying its presence in the securities market. In 2019, IDFC divested its stake, which was subsequently acquired by Dharmesh Anil Mehta and other investors. Finally, in 2020, it adopted the name DAM Capital Advisors Limited.

Market Position

DAM Capital Advisors has established itself as a reliable partner in India's capital markets, excelling in IPOs, qualified institutional placements (QIPs), and advisory services. Its strong client base and market insights position it as a formidable player in the investment banking sector.

Risks to Consider

While the DAM Capital Advisors IPO offers an appealing investment opportunity, potential investors should consider key factors such as market volatility, as broader economic conditions could influence listing gains. Additionally, since the IPO comprises solely an Offer for Sale (OFS), the proceeds will not contribute directly to strengthening the company's balance sheet.