DAM Capital Advisors IPO GMP zooms 38% ahead of launch; Should you apply?

DAM Capital Advisors IPO is set to open for public subscription on Thursday, December 19, 2024. Check IPO details, GMP, key dates, brokerage reviews, and more

DAM Capital Advisors IPO GMP zooms: The unlisted shares of investment and financial solutions provider, DAM Capital Advisors, were commanding a strong premium in the grey market ahead of the launch of their initial public offering scheduled for Thursday, December 19, 2024.

 

Sources tracking unofficial markets revealed that the DAM Capital Advisors’ unlisted shares were trading at Rs 391 apiece, reflecting a grey market premium (GMP) of Rs 108, or 38.16 per cent against the upper end of the IPO price of Rs 283.

 

DAM Capital Advisors IPO size

With the public offering, DAM Capital Advisors seeks to raise Rs 840.25 crore, which is an entirely offer-for-sale of 2,96,90,900 equity shares with a face value of Rs 2 apiece. From the promoter group, Dharmesh Anil Mehta is offloading 30,98,850 equity shares, while the rest are being divested by investors, including Multiples Alternate Asset Management, Narotam Satyanarayan Sekhsaria, RBL Bank, and Easyaccess Financial Services.

 

 

DAM Capital Advisors IPO registrar, BRLM details

Link Intime India serves as the registrar for the public offering of shares, while Nuvama Wealth Management is the sole book-running lead manager of the public offering.

 

DAM Capital Advisors IPO objective

DAM Capital Advisors, in its Red Herring Prospectus, said that it will not receive any proceeds of the offer-for-sale by the selling shareholders. Each of the selling shareholders will be entitled to their respective proportion of the proceeds of the offer-for-sale after deducting their portion of the offer-related expenses and the relevant taxes thereon.

 

DAM Capital Advisors IPO price band, lot size

DAM Capital Advisors has set the price band of the IPO at Rs 269-283 per share, and a lot size of 53 shares. Accordingly, the investors can bid for a minimum of 53 shares and in multiples thereof.

 

A retail investor would require a minimum of Rs 14,999 to bid for one lot or 53 shares of DAM Capital Advisors, while Rs 1,94,987 is required to bid for a maximum of 134 lots or 689 shares.

 

DAM Capital Advisors IPO allotment, listing date

The three-day subscription window to bid for the DAM Capital Advisors IPO is scheduled to close on Monday, December 23, 2024. Following the closure of the subscription window, the basis of allotment of DAM Capital Advisors IPO shares is scheduled to be finalised tentatively on Tuesday, December 24, 2024.

 

DAM Capital Advisors shares are slated to make their market debut with listing at BSE and NSE tentatively on Friday, December 27, 2024.

 

Should you Subscribe to DAM Capital Advisors IPO?

 

SBI Securities - Subscribe for long-term

Analysts at SBI Securities have advised investors to bid for the DAM Capital Advisors IPO from a long-term perspective. According to Sudeep Shah, DVP–Technical & Derivative Research, and Sunny Agrawal, DVP–Fundamental Research at SBI Securities, at the upper price band of Rs 283, DAM Capital Advisors is valued at a FY24 P/E multiple of 28.4x on post-issue capital. 

 

"The company has showcased remarkable financial performance over the years, with Revenue/EBITDA/PAT growing at a CAGR of 38.9 per cent/76.7 per cent/79.5 per cent respectively over the FY22-FY24 period and had the highest net profit margin among peers as of FY24."

 

The analysts believe that the domestic broking industry is expected to grow at a CAGR of 16-18 per cent from FY24-FY29, which shall augur well for the company’s growth. "We recommend investors to subscribe to the issue at the cut-off price for the long term."

 

Bajaj Broking - Subscribe for long term

Citing that DAM Capital Advisors has a promising outlook, driven by its strong market position, diverse client base, and robust financial performance, Bajaj Broking, in its report, has recommended investors subscribe to the IPO with a long-term perspective.

 

According to the brokerage, the current price band would value the company at approximately Rs 2,000 crore at the upper end of the price band. "The strong financial performance, with a total income of Rs 182 crore in FY24 and a net profit of Rs 70.52 crore, reflects the company's solid valuation and growth potential," said Bajaj Broking. "The company's strategic focus on expanding its investment banking services, private equity, and structured finance solutions positions it well to capitalize on growing market opportunities."

 

About DAM Capital Advisors

DAM Capital Advisors is a prominent investment bank in India, offering a comprehensive range of financial services. These include investment banking solutions such as equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory. Additionally, the company provides institutional equities services, encompassing broking and research.