DAM Capital Advisors IPO - Date, GMP, Price & Details

DAM Capital Advisors IPO - Complete Overview 

DAM Capital Advisors IPO a Mainboard IPO is a book-built issue of Rs.840.25 Cr (2.97 Cr Shares) by DAM Capital Advisors Limited which is the investment bank in India. It enables the client to meet the diversified financial needs in the following popular areas:

(i) Investment banking relating to equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory, and

(ii) Institutional equities comprising broking and research.

This organization executed in its 72 ECM transactions: 27 Initial Public Offerings, 16 Qualified Institutional Placements, Offers for Sale, 6 Preferential Issues, 4 Rights Issues, 8 Buybacks, 4 Open Offers, and an Initial Public Offer of Units by a Real Estate Investment Trust in the total of 72 ECM transactions. (from the date of the Acquisition i.e., on November 7, 2019, till October 31, 2024).

The advisory transactions in M&A by DAM Capital Advisors Limited total 23 advisory transactions such as M&A; A advisory, private equity advisory, structured finance advisory, and also block traded as at date of completion of Acquisition: November 7, 2019, to October 31, 2024.

As for the institutional equities business, it now consists of 29 employees in research and 34 members in the broking team as of October 31, 2024.

The company has provided services to 263 active clients and included registered FPIs available in different geographies, such as India, the USA, the UK, Europe, Hong Kong, Singapore, Australia, Taiwan, South Korea, the Middle East, and South Africa.

As of October 31, 2024, The company has a headcount of 121 staff across all businesses. The company's only subsidiary wholly-owned is DAM Capital (USA) Inc. which is duly registered in New York, USA as a Broker-Dealer with the Securities and Exchange Commission.

This new IPO is to be launched on 19 December 2024, and the initial public offering of this upcoming IPO will end on 23 December 2024.

DAM Capital Advisors IPO Details

The Rs.840.25 crore DAM Capital IPO comprises a wholly offer for sale (OFS) of 2.97 Cr Shares. The IPO listing date is on December 27, 2024. DAM Capital Advisors IPO price is Rs.269 to Rs.283. 

If you want to apply for the IPO, Click Here to open a Demat Account.

Company Financial

The company’s revenue grew by 114% and PAT increased by 713% between FYs ended 31 Mar 2024 - 31 Mar 2023.
(Amount in Crore)

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

Stock broking Revenue Bifurcation

(Amount in millions)

 

Business-wise Revenue Bifurcation

(Amount in millions)

The Objective of the Issue

None of the revenues from the offer (the “Offer Proceeds”) will go to the company; instead,

All of the offer proceeds will go to the selling shareholders once offer-related costs have been

deducted.

Peers of DAM Capital Advisors Limited

 

Evaluation

The DAM Capital Advisors Limited IPO price band is between Rs.269 to Rs.283 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.9.98 from the last year, the resulting P/E ratio is 28.35x. 

Considering the weighted EPS of Rs.5.92 for the last three years, the P/E ratio is 47.80x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 23.63x.

 

In simple words, the P/E ratio of this IPO (28.35x), compared with the industry’s average P/E of 23.63x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths    

• India's merchant bank with the quickest rate of growth.

• Demonstrated performance with a thorough comprehension of industries and goods.

• A platform for institutional equity that offers extensive research and execution capabilities.

• Comprehensive coverage of institutional investors, corporates, and financial sponsors with recurring business.

• Professionals and management with experience, supported by an independent board with a majority.

• A solid history of profitability and sales growth. 

 

IPO’s Weaknesses 

• No Established Market for Equity Shares: This is the first public issuance of Equity Shares by the company, and therefore an established market has not come into existence. Floor Price, Cap Price, and Offer Price should not be deemed necessarily representative of the market price of the shares after listing. No assurance can be given for the active or sustained trading in the shares after listing.

• Risk of Investment: Equity and equity-related investments are risky types of investments, and investors should be ready to lose their total investments. The investment decision must therefore be made after a thorough examination of the company and the associated risks.

• Liquidity risk: Uncertainty overrides the liquidity of Equity Shares post-listing. No assurance can be given regarding the existence of an active trading market or the price at which the shares will be traded.

• Risk associated with the performance of the company: Risks associated with operational difficulties, changes in the market, and uncertainty concerning finances associated with the performance of a company will reflect on investment outcomes.

• These factors highlight the necessity of getting acquainted with the risk factors involved with investment through equity shares mainly relevant to the public offering.

 

DAM Capital IPO GMP

DAM Capital Advisors IPO GMP today is Rs.68 as of 16 December 2024. With the price of Rs.283, the estimated listing price is Rs.351 while writing this information.

DAM Capital IPO Timetable (Tentative)

The IPO date is from 19 December to 23 December, with IPO allotment on 24 December, and refund initiation on 26 December. The IPO listing date is on 27 December 2024.

 

IPO Other Details 

With a face value of Rs.2 per Share, DAM IPO size is 2,96,90,900 Shares (Rs.840.25 Cr) and it will be listed at BSE and NSE.

DAM IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (53 Shares) amounting to Rs.14,999 and 13 Lots (689 Shares) amounting to Rs.1,94,987 respectively, while for HNI investors, the minimum Lot is 14 (742 Shares) amounting to Rs.2,09,986.

IPO Reservation

Promoters and Management of DAM Capital Advisors Ltd. 

• Dharmesh Anil Mehta

• Sonali Dharmesh Mehta

• Boombucket Advisors Private Limited.
  
  

IPO Lead Managers

Nuvama Wealth Management Limited.

Dividend Policy

Dividend of Rs.2.50, Rs.1, and Rs.1.50 per equity share was paid out by the company in FY24, FY23, and FY22 respectively.

Conclusion

The DAM Capital Advisors IPO presents an opportunity to become a stakeholder in one of the fastest-growing merchant banks, which has a very impressive track record in ECM, M&A advisory, and institutional equities. It's an extremely strong financial growth company, and the price at which it is being offered is, on a relative basis, greater than the industry; hence there is an aggressive valuation. It is up to the investors to gauge the merits of the strengths and growth potential of the company, as opposed to market risks and competition. A thorough risk assessment and investment objectives must be adjusted before applying.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here  to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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