DAM Capital Advisors IPO 2024: 10 Key Facts Before You Invest
DAM Capital Advisors Limited, a rapidly growing investment bank in India, is all set to launch its ₹840.25 crore Initial Public Offering (IPO) from December 19 to December 23, 2024. Offering a range of financial solutions, the company has established itself as a trusted partner for equity capital markets, mergers and acquisitions, and institutional equities services.
Here are the 10 key things you should know before investing in the DAM Capital Advisors Limited IPO:
Why is DAM Capital Advisors Limited a promising opportunity?
DAM Capital Advisors Limited stands out for its proven expertise in executing complex financial transactions. Since November 2019, the company has successfully handled 72 ECM transactions, including IPOs, QIPs, buybacks, and REIT offerings.
The company boasts a fast-growing reputation in institutional equities and investment banking with a client base of 263 active customers across geographies like India, the USA, Europe, Hong Kong, and Australia. Its revenue has consistently grown, reaching ₹182 crore in FY24, a testament to its robust operations and deep market understanding.
What are the IPO dates, price band, and issue size?
Here are the key details of the DAM Capital Advisors IPO:
- IPO Dates: December 19th – 23rd, 2024
- Listing Date: December 27th, 2024
- Price Band: ₹269–₹283 per share
- Total Issue Size: ₹840.25 crore
- Face Value: ₹2 per share
- Lot Size: 53 shares
- Listing Exchange: BSE, NSE
- Promoters: Dharmesh Anil Mehta, Sonali Dharmesh Mehta, and Boombucket Advisors Pvt Ltd
What is the minimum investment for the IPO?
The minimum investment required for the DAM Capital Advisors IPO is ₹14,257, based on the lot size of 53 shares at the lower price band of ₹269 per share. For a higher probability of allotment, consider applying at the upper price band, which amounts to ₹14,999 (53 shares at ₹283 per share).
What does the company do?
Founded to provide top-notch investment banking services, DAM Capital Advisors Limited specializes in equity capital markets, mergers and acquisitions, private equity advisory, and institutional equities.
- Services: Includes IPOs, QIPs, structured finance advisory, and institutional broking.
- Geographical Reach: Operations extend across India, USA, UK, Europe, and Asia.
- Clientele: The company has serviced reputed FPIs, domestic institutions, and corporates, strengthening its foothold in financial markets.
What is the objective of the IPO?
The IPO is an Offer for Sale (OFS), allowing selling shareholders to divest their holdings. As a result, the company will not receive any proceeds from the issue.
How is the IPO allocated among investors?
The IPO shares are allocated as follows:
- Qualified Institutional Buyers (QIBs): Up to 50%
- Non-Institutional Investors (NIIs): At least 15%
- Retail Investors: At least 35%
What are the key strengths and risks of investing?
Strengths:
- Recognized as one of India’s fastest-growing merchant banks.
- Proven track record of successful execution in equity capital markets.
- Experienced management team backed by a strong, independent board.
- Expanding geographical presence with a diverse client base.
Risks:
- Operates in a highly regulated industry; non-compliance could lead to penalties.
- Business is sensitive to economic and market conditions, impacting revenue during downturns.
- Previous losses in the stockbroking segment could pose a risk if brokerage fees decline further.
- Periodic inspections by regulatory authorities could result in penalties or reputational damage.
What is DAM Capital Advisors’ financial performance?
The company has shown notable growth over the years:
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets (₹ Cr) | ₹214.68 | ₹1201.16 | ₹166.72 |
| Revenue (₹ Cr) | ₹182 | ₹85.04 | ₹94.51 |
| Profit After Tax (₹ Cr) | ₹70.52 | ₹8.67 | ₹21.9 |
What is the IPO allotment and listing timeline?
- Basis of Allotment: December 24th, 2024
- Refund Initiation: December 26th, 2024
- Shares Credited to Demat Accounts: December 26th, 2024
- Listing Date: December 27th, 2024
Should you invest in DAM Capital Advisors Limited IPO?
DAM Capital Advisors Limited presents a compelling opportunity for investors, given its strong industry standing, experienced management, and growing financial metrics. However, investors should carefully assess risks such as regulatory challenges and market sensitivity.
Evaluate your financial goals and risk tolerance before making an investment decision in this IPO.
