DAM Capital Advisors IPO Day 2 Live Updates: The investment bank DAM Capital Advisors launched its initial public offering, with a share price range of ₹269-283, on December 19. The public offer will remain open for subscription till December 23. On Wednesday, it announced that it had secured ₹251 crore from anchor investors, just one day prior to the start of its initial share sale for public subscription.
Among the anchor investors listed in a circular posted on the BSE website are Nomura, Goldman Sachs, HSBC, Societe Generale, Nippon India Mutual Fund (MF), HDFC MF, Kotak MF, and Aditya Birla Sun Life MF.
The DAM Capital Advisors IPO was subscribed 6.98 times by the end of the bidding process on the second day. The Qualified Institutional Buyers (QIB) portion was subscribed 0.07 times while the Non-Institutional Investors (NII) portion was booked 11.49 times. The Retail Investor portion garnered 8.96 times bids and the quota reserved for employees witnessed 13.06 times subscription.
The IPO consists entirely of an offer-for-sale (OFS) of 2.97 crore equity shares valued at ₹840.25 crore, provided by a promoter and investors at the higher end of the price band, without any new issuance component.
The sellers of shares in the OFS include promoter Dharmesh Anil Mehta, along with investors like Multiples Alternate Asset Management, RBL Bank, Easyaccess Financial Services, and Narotam Satyanarayan Sekhsaria. At the highest point of the price range, the company's market capitalization is estimated at ₹2,000 crore.
Fifty per cent of the offering has been allocated for qualified institutional buyers, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.
Led by Mehta, DAM Capital Advisors is a prominent investment bank in the nation, holding a market share of 12.1 per cent based on the number of IPOs and qualified institutional placements it managed as the book-running lead manager in FY24, as per a report by Crisil.
DAM Capital Advisors IPO was subscribed 6.98 times at the end of the bidding process on the second day of the IPO. Here's how different quotas were subscribed:
QIB: 0.07x
NII: 11.49x
Retail: 8.96x
Employee: 13.06x
50% of the Equity Shares allotted to Anchor Investors under the Anchor Investor Portion shall be locked-in for a period of 90 days from the date of Allotment, and the remaining 50% shall be locked-in for a period of 30 days from the date of Allotment.
DAM Capital Advisors IPO was subscribed 6.34x on the second day of the IPO. Here's how different quotas were subscribed:
QIB: 0.05x
NII: 10.20x
Retail: 8.25x
Employee: 11.81x
Nuvama Wealth Management is the book-running lead manager for DAM Capital Advisors IPO while Link Intime India is the registrar.
As of the date of the RHP, the company had seven shareholders who owned 100% of the pre-offer share capital. These include Dharmesh Anil Mehta, Multiples Alternate Asset Management, Narotam Satyanarayan Sekhsaria, Boombucket Advisors, RBL Bank, Easyaccess Financial Services, and Sonali Dharmesh.
Total expenses increased by ₹133.57 million, or 18.25%, from ₹731.75 million in Fiscal 2023 to ₹865.32 million in Fiscal 2024, primarily due to an increase in employee benefit expense. Our total expenses represented 47.55% and 86.05% of our total income in Fiscals 2024 and 2023, respectively.
DAM Capital IPO was subscribed 5.19x on the second day of the bidding process on Friday. Here's how different quotas were subscribed:
QIB: 0.02x
NII: 7.50x
Retail: 7.11x
Employee: 10.56x
Source: RHP
India is projected to almost double its nominal GDP by Fiscal 2030 (Source: CRISIL Report). In Fiscal 2024, the equity markets in India have achieved record levels in terms of market capitalisation of listed companies and the benchmark index performance (Source: CRISIL Report). India’s market capitalisation rose by a strong 52% year-on-year to ₹394 trillion as of March 31, 2024, marking it the second highest growth in a year in the last 14 years (Source: CRISIL Report). DAM Capital is strategically positioned to capitalize on India’s growth story. Deep industry expertise, robust research capabilities, and large investor distribution network in institutional equities business puts DAM Capital in a sweet spot.
Multiples Alternate Asset Management Private Limited, an investor-selling shareholder, is offering up to 8,714,400 equity shares.
Narotam Satyanarayan Sekhsaria, another investor-selling shareholder, is offering up to 7,042,400 equity shares.
RBL Bank Limited, also an investor-selling shareholder, is offering up to 5,771,000 equity shares.
Easyaccess Financial Services Limited, an investor-selling shareholder, is offering up to 5,064,250 equity shares.
Dharmesh Anil Mehta, a promoter-selling shareholder, is offering up to 3,098,850 equity shares.
The company has demonstrated impressive growth in recent years, with total income rising from ₹945.08 million in FY22 to ₹1,820 million in FY24, reflecting a compound annual growth rate (CAGR) of 38.77%. Profit after tax (PAT) also saw a significant increase, reaching ₹705.23 million, which represents a robust CAGR of 79.46% from FY22 to FY24.
DAM Capital IPO was subscribed 4.42 times so far on the second day of the book-building process. The QIB portion was subscribed 0.02x, NII portion 6.32x, retail portion 6.09x and employee portion 9.09x.
DAM Capital is the fastest-growing merchant bank in India by revenue CAGR from Fiscals 2022 to 2024, with the highest profit margin in Fiscal 2024, among the peers considered, as per a CRISIL report. It is one of the leading merchant banks in India, with a market share of 12.1%, based on the number of initial public offerings and qualified institutional placements undertaken by us as the book running lead manager in Fiscal 2024. It provides a wide range of financial solutions in the areas of:
(i) merchant banking, comprising equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory; and
(ii) institutional equities, comprising broking and research.
The company commenced operations in the securities market in 1993 as S.S. Kantilal Ishwarlal Sharebrokers and Investors. In 1994, it rebranded and operated under the name S.S. Kantilal Ishwarlal Securities Private Limited (SSKIPL).
In 2006, Infrastructure Development Finance Company (IDFC) began acquiring SSKIPL, and the acquisition was completed in 2008. In 2019, the IDFC group divested its entire stake, which was acquired by Dharmesh Anil Mehta and other investors. Subsequently, in July 2020, the company's name was changed to DAM Capital Advisors Limited.
Strengthen Competitive Position
In the merchant banking business, the company plans to grow by expanding products, client base, and transaction value. Its focus will be on high-value deals and deepening relationships with key industry players and financial sponsors. It will also add new offerings such as InvITs, offshore listings, venture capital, cross-border M&A, and debt markets to stay ahead of trends. In institutional equities, the company aims to expand our market share by advising on emerging opportunities, improving research, and offering tailored insights to large investors.
Enhance Merchant Banking Platform
The company will meet client funding needs and increase business share by strengthening relationships with corporate and institutional clients. Industry seminars will showcase its expertise and attract new business. It will also focus on new economy sectors and build long-term partnerships with growing companies, providing financial and advisory support throughout their lifecycle.
Strengthen Institutional Equities Platform
It will expand research coverage, particularly in emerging sectors, and attract top talent. By adding experienced sales personnel and enhancing corporate access through seminars, it aims to grow client base and increase retention. It will also upgrade sales trading technology and skills to drive higher transaction volumes and meet clients' evolving needs.
DAM Capital Advisors IPO was subscribed 3.45 times on the second day of the bidding process on Friday. Here's how different quotas were subscribed:
QIB: 0.01x
NII: 4.91x
Retail: 4.82x
Employee: 7.28x
The company provides clients with financial advisory services in relation to domestic and cross-border mergers and acquisitions, and restructuring. it has been among the most active merchant banks across business cycles with experience in executing complex M&A transactions.
Some of its marquee transactions include advisory on the acquisition of Glenmark Life Sciences by the Nirma group and advisory to Sterling and Wilson Solar on the acquisition of its 40% stake by Reliance New Energy Solar, a wholly-owned subsidiary of Reliance Industries, through a combination of primary investment, secondary purchase, and open offer, aggregating to ₹28,450 million. The company's financial advisory team also works closely with financial sponsors and global private equity funds in India to facilitate and advise on private equity investments and exits.
The DAM Capital Advisors IPO is a book-built issue worth ₹840.25 crores, entirely consisting of an offer for sale of 2.97 crore shares.
DAM Capital Advisors IPO GMP today is ₹170. At the upper price band, the company shares could list at ₹453, a premium of 60%. The GMP has witnessed sharp increase from ₹108 from December 16 to ₹170 currently.
DAM Capital Advisors IPO was booked 2.75 times on the first day of the bidding process on Thursday. The IPO witnessed strong demand from retail investors and non-institutional investors (NIIs), with both quotas sailing through on the first day of the book-built offer. Here's how different quotas were subscribed at the end of the first day:
QIB: 0.01x
NII: 3.72x
Retail: 3.88x
Employee: 6.19x
The listed peers of DAM Capital include ICICI Securities, IIFL Capital, JM Financial, and Motilal Oswal Financial Services. DAM Capital has a price-to-earnings (P/E) ratio of 28.35x, while ICICI Securities stands at 16.96x and IIFL Capital at 20.56x. In comparison, JM Financial and Motilal Oswal Financial Services have P/E ratios of 32.66x and 23.57x, respectively.
The company has witnessed an increase in number of active clients in both institutional and non-institutional categories.
Source: RHP
Source: RHP
DAM Capital Advisors Ltd (DAM Capital) is a leading investment bank in India, holding a 12.1% market share in Fiscal 2024 based on the number of IPOs and QIPs where it acted as the book-running lead manager. The company operates primarily in two segments: Merchant Banking and Institutional Equities. It offers a comprehensive range of financial solutions, including equity capital markets (ECM), M&A advisory, private equity, structured finance, broking, and research, positioning itself as a full-service financial services provider in India.
Based on annualized FY 2025 earnings and fully diluted post-IPO paid-up capital, the company is seeking a PE of 22.85x, which seems reasonable considering its strong financial recovery and growth trajectory. However, investors should consider the 100% Offer for Sale (OFS) of ₹840.25 crore, which could raise concerns for new investors. Given the company’s client-focused approach, which has fostered long-term relationships with institutional investors, financial sponsors, and corporates, leading to repeat business, DAM Capital is well-positioned to capitalize on India’s vibrant equity markets. Hence, we recommend investors to “SUBSCRIBE” to the DAM Capital Advisory Ltd IPO from a listing gain perspective only.
Nuvama Wealth Management is the book-running lead manager for DAM Capital Advisors IPO while Link Intime India is the registrar to the offer.
DAM Capital Advisors IPO was subscribed 1.52 times so far on the first day of the bidding process. Here's how different quotas were subscribed:
QIB: NIL
NII: 1.62x
Retail Investors: 2.33x
Employees: 3.34x
The company has demonstrated impressive growth in recent years, with total income rising to ₹1,820 million in FY24 from ₹945.08 million in FY22, reflecting a compound annual growth rate (CAGR) of 38.77%. Profit after tax (PAT) also saw a substantial increase, reaching ₹705.23 million, marking a strong CAGR of 79.46% between FY22 and FY24.
Source: RHP
DAM Capital Advisors IPO was fully subscribed within less than 3 hours of opening. At 12.35 pm, the issue was booked 1.01 times. Here's how different quotas were subscribed:
QIB: NIL
NII: 1x
Retail Investors: 1.58x
Employees: 2.33x
The company has a wholly owned subsidiary in India, DAM Asset Management Limited, incorporated on July 8, 2024. The subsidiary plans to engage in asset management and investment advisory services for various clients. However, the WOS is not yet operational and is awaiting the certificate of commencement of business.
The Company also has a wholly owned subsidiary in the USA, DAM Capital (USA), Inc. This subsidiary is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA) in the USA.
Additionally, the Company had a wholly owned subsidiary in Singapore, IDFC Securities Singapore Pte. Ltd. (IDFCSS), which was dissolved and liquidated on November 16, 2021. The Company has filed an application for the removal of its Unique Document Identification Number (UDIN).
The company operates in a highly regulated environment, which is subject to changes in laws, regulations, and government policies. Further, the company is required to maintain various licences and permits for its business from time to time. Any failure or delay in obtaining or renewing licences or permits, or non-compliance with changing laws, may adversely affect the business.
Its merchant banking and institutional equities business is highly dependent on market and economic conditions. Adverse market or economic conditions could have a significant economic and financial impact.
A significant portion of the company’s revenue is from only two income streams, namely, advisory fee income and brokerage, which are highly dependent on general macroeconomic conditions, and their continued success is necessary for its business prospects.
Since the IPO is entirely an OFS by the investor and promoter selling shareholders, the company will not receive any proceeds. Each of the selling shareholders will be entitled to their respective proportion of the proceeds from the OFS, after deducting their portion of the Offer-related expenses and the relevant taxes thereon.
DAM Capital Advisors IPO witnessed strong traction, with the retail portion garnering over 50% bids in less than one hour of the public offer opening for subscription.
At 10.55 am, the retail portion of the IPO was booked 59% with the overall IPO subscribed 37%.
IPO Opening Date: Thursday, December 19, 2024
IPO Closing Date: Monday, December 23, 2024
Basis of Allotment: Tuesday, December 24, 2024
Initiation of Refunds: Thursday, December 26, 2024
Credit of Shares to Demat: Thursday, December 26, 2024
Listing Date: Friday, December 27, 2024
DAM Capital Advisors IPO was subscribed 6% within 15 minutes of opening. Here's how different quotas were subscribed:
QIB: NIL
NII: 9%
Retail Investors: 9%
Employees: 5%
DAM Capital Advisors IPO opened for bidding at 10 am. Investors can now place their bids for the public issue. They can bid for the IPO till Monday, December 23.
DAM Capital IPO is entirely an offer for sale of up to 29,690,900 Equity Shares of face value of ₹2 each by the investor and promoter selling shareholders.
On Wednesday, investment bank DAM Capital Advisors announced that it has raised ₹251 crore from anchor investors, ahead of the opening of its initial public offering (IPO) for public subscription.
Among the anchor investors are notable entities such as Nomura, Goldman Sachs, HSBC, Societe Generale, Nippon India Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund, and Aditya Birla Sun Life Mutual Fund, as stated in a circular posted on the BSE website.
The circular revealed that DAM Capital has allotted 88.86 lakh shares to 33 funds at ₹283 each, the upper limit of the price band, bringing the total transaction value to ₹251.48 crore.
DAM Capital Advisors IPO GMP today is +148. This indicates DAM Capital Advisors share price was trading at a premium of ₹148 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of DAM Capital Advisors share price is indicated at ₹431 apiece, which is 52.3% higher than the IPO price of ₹283.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
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