DAM Capital Advisors IPO is a book-built issue worth ₹840.25 crore, consisting entirely of an offer for sale of 2.97 crore shares. The IPO subscription period has started today, and will close on December 23, 2024. The allotment is expected to be finalised on December 24, 2024, with the listing scheduled for December 27, 2024, on both BSE and NSE.
The price band for the IPO is fixed between ₹269 and ₹283 per share. Retail investors are required to apply for a minimum lot size of 53 shares, amounting to an investment of ₹14,999. For sNII investors, the minimum application size is 14 lots (742 shares), which equals ₹2,09,986, while bNII investors must apply for at least 67 lots (3,551 shares), requiring an investment of ₹10,04,933.
Nuvama Wealth Management Limited serves as the book-running lead manager for the IPO, ensuring smooth execution. Link Intime India Private Ltd is the registrar responsible for managing the allotment process. DAM Capital Advisors’ IPO offers investors an opportunity to participate in a notable capital market listing.
Industry Outlook
- While physical assets accounted for 71% of household savings in FY23, financial assets are expected to gain share in the next 5 years as investors look for higher-yielding options amid inflation.
- The NSE’s market capitalisation grew at a CAGR of 14.4% from FY11 to FY24, while NIFTY 50 recorded a 10.9% CAGR during the same period, showcasing the capital market's dynamic growth.
DAM Capital Advisors IPO Objectives
The proceeds from the Offer for Sale will not go to the company, as they will be received by the selling shareholders. Each selling shareholder will receive their proportionate share of the proceeds after deducting Offer-related expenses and applicable taxes.
About DAM Capital Advisors Limited
DAM Capital Advisors Limited is one of India’s fastest-growing merchant banks, with a revenue CAGR of 38.77% from Fiscals 2022 to 2024 and the highest profit margin among peers in Fiscal 2024 (Source: CRISIL Report). It holds a market share of 12.1% as the book-running lead manager in IPOs and qualified institutional placements during Fiscal 2024.
The company provides comprehensive financial solutions, including merchant banking services like equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory. Additionally, its institutional equities business delivers broking and research services to 263 active clients across global markets, including India, the USA, UK, Europe, and Asia.
Since its acquisition in 2019, DAM Capital has executed 72 ECM transactions and 23 advisory deals, demonstrating its strong execution capabilities. Under the leadership of Dharmesh Anil Mehta, with over 25 years of experience, the company achieved significant financial growth. For Fiscal 2024, total income reached ₹1,820.00 million, while profit after tax stood at ₹705.23 million.
Backed by seasoned professionals, with 54 employees having over 18 years of experience, the company remains strategically positioned to capitalise on India’s economic growth. With India’s equity markets achieving record levels, DAM Capital Advisors is well-poised to deliver innovative and tailored financial solutions.
How To Check the Allotment Status of the DAM Capital Advisors IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for a DAM Capital Advisors IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the DAM Capital Advisors IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of DAM Capital Advisors Limited
Registered office: PG-1, Ground Floor, Rotunda Building, Dalal Street, Fort, Mumbai 400 001, Maharashtra, India
Phone: +91 22 4202 2500
E-mail: compliance@damcapital.in
DAM Capital Advisors IPO Reservation
|
Investor Category |
Shares Offered |
|
QIB Shares Offered |
Not more than 50% of the offer |
|
Retail Shares Offered |
Not less than 35% of the offer |
|
NII (HNI) Shares Offered |
Not less than 15% of the offer |
DAM Capital Advisors IPO Category Reservation Table
|
Application Category |
Maximum Bidding Limits |
Bidding at Cut-off Price Allowed |
|
Only RII |
Up to ₹2 lakh |
Yes |
|
Only sNII |
₹2 lakh to ₹10 lakh |
No |
|
Only bNII |
₹10 lakh to NII Reservation Portion |
No |
|
Only employee |
Up to ₹5 lakh |
Yes |
|
Employee + RII/NII |
Employee limit: Up to ₹5 lakh (In certain cases, employees are given discount if bidding amount is up to ₹2 lakh) If applying as RII: Up to ₹2 lakh If applying as NII: sNII > ₹2 lakh and up to ₹10 lakh and bNII > ₹10 lakh |
Yes for shareholder/RII |
DAM Capital Advisors IPO Lot Size Details
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
53 |
₹14,999 |
|
Retail (Max) |
13 |
689 |
₹1,94,987 |
|
S-HNI (Min) |
14 |
742 |
₹2,09,986 |
|
S-HNI (Max) |
66 |
3,498 |
₹9,89,934 |
|
B-HNI (Min) |
67 |
3,551 |
₹10,04,933 |
DAM Capital Advisors IPO Promoter Holding
The company's Promoters are Dharmesh Anil Mehta, Sonali Dharmesh Mehta and Boombucket Advisors Private Limited.
|
Share Holding Pre Issue |
45.88% |
|
Share Holding Post Issue |
- |
Key Performance Indicators for DAM Capital Advisors IPO
As of March 31, 2024, the KPIs of DAM Capital Advisors
|
KPI |
Values |
|
ROE |
54.72% |
|
RoNW |
44.98% |
|
PAT Margin |
38.75 |
|
Price to Book Value |
12.76 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
P/E (x) |
28.37 |
28.37 |
|
EPS (₹) |
9.98 |
9.98 |
DAM Capital Advisors IPO Prospectus
DAM Capital Advisors IPO Registrar and Lead Managers
DAM Capital Advisors IPO Lead Managers
Nuvama Wealth Management Limited
Registrar for DAM Capital Advisors IPO
Link Intime India Private Ltd
- E-mail: damcapital.ipo@linkintime.co.in
- Contact Number: +91-22-4918 6270
Website: DAM Capital Advisors IPO Registrar
Financial Performance of DAM Capital Advisors Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ million) | 1,800.42 | 849.26 |
| Profit After Tax (PAT) (in ₹ million) | 705.23 | 86.74 |
| Total Borrowings (in ₹ million) | 49.29 | 32.94 |
| Net Worth (in ₹ million) | 1,567.86 | 876.77 |
| Return on Net Worth (%) | 44.98 | 9.89 |
| EBITDA (in ₹ million) | 1,010.59 | 182.28 |
| Earning Per Share (EPS)-in absolute ₹ | 9.98 | 1.23 |
Know before investing
Strengths
8DAM Capital achieved a revenue CAGR of 38.77% from FY22-FY24.
Highest profit margin in Fiscal 2024 among peers as per CRISIL.
Market share grew from 8.2% in FY21 to 12.1% in FY24.
Strong merchant banking team with 40 employees, 9 having 18+ years’ experience.
Completed 17 IPOs and QIPs as book running lead managers in FY24.
The company aims to expand into InvITs, offshore listings, venture fundraising, and M&A.
Targeting asset management with AUM growth projected at 17-18% CAGR.
Leveraging expertise in emerging sectors like clean energy and semiconductors.
Risks
8Changes in laws and delayed licenses may disrupt business operations and negatively affect financial performance.
The company’s revenue is primarily dependent on two income sources—advisory fees and brokerage.
Adverse market conditions or economic downturns can severely affect the company's performance in its merchant banking and institutional equities businesses.
International operations in the USA are subject to inspections by regulatory authorities, which could lead to penalties or adverse regulatory actions.
The company faces potential liabilities in case of legal claims arising from misleading statements, inaccurate advice, or unauthorised trading.
In Fiscal Year 2024, DAM Capital's total income from advisory fees and brokerage reached ₹1,738.35 million, highlighting the reliance on these two income streams.
The success and growth of DAM Capital are closely tied to the leadership team, particularly the promoter, managing director, and senior management.
The company has faced challenges in retrieving certain corporate records from before 2019, including details about capital structure, company filings, and other important documents.
Peer Comparison of DAM Capital Advisors Limited
| Competitor | EPS (Basic) | EPS (Diluted) | NAV (per share) (₹) | RoNW (%) |
|---|---|---|---|---|
| DAM Capital Advisors Limited | 9.98 | 9.98 | 23.00 | 43.37 |
| Icici Securities Ltd | 52.51 | 52.22 | 121.40 | 43.25 |
| Iifl Securities Ltd | 16.73 | 16.40 | 58.09 | 28.71 |
| Jm Financial Ltd. | 4.29 | 4.29 | 115.70 | 0.25 |
| Motilal Oswal Financial Services Ltd. | 41.16 | 40.73 | 147.12 | 27.89 |
