Dealmaker Dharmesh Anil Mehta-led DAM Capital Advisors' IPO to open on Dec 19
The much-awaited initial public offering (IPO) of DAM Capital Advisors, led by veteran investment banker Dharmesh Mehta, is set to open on December 19, 2024. This will be India’s first public issue by a pure-play boutique investment bank. With the release of the Red Herring Prospectus (RHP) and details on the price band expected on December 16, 2024, here’s a deep dive into everything you need to know about this exciting IPO.
📢 DAM Capital Advisors Limited IPO
🗓️Date: 19 - 23 Dec,2024
🏷️Price Band : ₹269- ₹283
📦Market Lot: 53 Shares
💰Application Amount: ₹14,999
📏Size : ₹840.25 Cr Approx
👦Retail Portion: 35%
📃 Retail Form: 1,95,610
📄HNI Small Form: 1,996
📄HNI Big Form: 3,992
🏷️Face Value: ₹2
What is DAM Capital Advisors?
A boutique investment bank in India, DAM Capital Advisors has traditionally been focused on equity capital markets and advisory services. This firm was established by Dharmesh Mehta; the company has facilitated thousands of IPOs and QIPs over the years. With competition from industry stalwarts such as ICICI Securities, JM Financial, and Motilal Oswal Financial Services, the firm would enter the public market.
What does a DAM Capital Advisors IPO do?
The IPO will be an Offer for Sale (OFS), which means that the company will not raise fresh capital through the issue. Instead, existing shareholders will sell their equity stake. In this case, 2.96 crore equity shares will be offered for sale. The promoters and investors will sell their shares in this offer.
Promoter's Stake: Dharmesh Anil Mehta, his wife, and their firm, Boombucket Advisors, own a combined 45.88% stake in the company.
Investor's Share: The remaining 54.12 percent of the stakes are investors such as Multiples Alternate Asset Management, Narotam Satyanarayan Sekhsaria, RBL Bank, and Easyaccess Financial Services.
Who are the Selling Shareholders of DAM Capital Advisors?
The selling shareholders in this Offer for Sale include:
Dharmesh Anil Mehta – Promoter
Multiples Alternate Asset Management
Narotam Satyanarayan Sekhsaria
RBL Bank
Easy access to Financial Services
These shareholders will be offloading part of their equity stake in the company through public issues.
What is the DAM Capital Advisor IPO’s Size and Structure?
Total shares for sale: 2.96 crore equity shares
No fresh issue: There won’t be any new shares issued by the company; this is entirely an offer for sale.
Public Issue Reserved For:
50% for Qualified Institutional Buyers (QIBs)
35% for Retail Investors
15% for Non-Institutional Investors
When Will the DAM Capital Advisor IPO Open and Close?
IPO opens: December 19, 2024
IPO closes: December 23, 2024
The Anchor Book (up to 60% of the QIB portion) will open for institutional investors on December 18, 2024.
DAM Capital Advisors IPO Timeline
Why is the DAM Capital Advisor IPO Significant?
There are two reasons why this IPO is particularly significant:
- The First Pure-Play Boutique Investment Bank IPO: DAM Capital Advisors is the first pure-play boutique investment bank in India to file for an IPO, which makes it an important event in the Indian capital markets.
- Strong Financial Performance: DAM Capital Advisors has posted strong financial results. The company's net profit has more than eight-folded to ₹70.5 crore in FY24, as against ₹8.8 crore in FY23. Besides, its revenue surged 112% to ₹180 crore from ₹84.9 crore during the same period.
What Sets DAM Capital Advisors Apart?
DAM Capital has firmly established itself in India’s equity capital market. As of November 2019, the company has been involved in 72 equity capital market transactions, including IPOs and QIPs, accounting for 12.1% of the market share. DAM Capital has also executed 23 advisory transactions, further strengthening its market position.
Despite the fact that it faces competition from larger firms like ICICI Securities and Motilal Oswal, DAM Capital has emerged as a key player because of its tailored services and deep industry expertise.
Who will lead the IPO?
Nuvama Wealth Management will manage the issue of this IPO. It is the solitary book-running lead manager for this offer. As the registrar of the issue, Link Intime India would oversee all applications and allotments for the public.
Key Takeaways
Issue date for opening: December 19, 2024
Price band date: December 16, 2024
OF of 2.96 crore equity shares and fresh equity not issued.
To whom: 50 percent for QIBs, 35 percent for Retail Investors, and 15 percent for Non-Institutional Investors
Strong financials FY24 net profit up 8x, revenue up 112%
IPO lead manager: Nuvama Wealth Management
Registrar: Link Intime India
Investors can now become a part of India's leading boutique investment bank with this IPO, which is marked by impressive financial growth and a solid track record in the capital market.
Who is Managing the DAM Capital Advisors’ IPO?
Key Takeaways
For investors, this IPO provides an opportunity to invest in India’s leading boutique investment bank, backed by impressive financial growth and a robust track record in capital markets.
DAM Capital Advisors is a very exciting IPO, especially for those interested in India's capital markets sector. Although the offer does not raise fresh funds for the company, the robust financials and reputation of its promoters make this a promising listing. Be it a retail investor or an institutional player, the price band disclosed needs to be evaluated, and then decide if the risk is worth the potential reward.
Stay tuned for more updates, and don't miss your chance to subscribe when the IPO opens on December 19, 2024!
