| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 269 to ₹ 283 | 53 | 19th Dec, 2024 – 23rd Dec, 2024 | ₹ 840.25 Cr |
About Dam Capital Advisors Limited IPO
DAM Capital Advisors Limited is an investment bank in India. The company offers a wide range of financial solutions in the areas of:
(i) Investment 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.
DAM Capital is the fastest-growing merchant bank in India, achieving the highest revenue CAGR from FY22 to FY24 and the best profit margin among peers in FY24. As one of the leading merchant banks in India, DAM Capital achieved a market share of 12.1% in FY24, based on the number of IPOs and QIPs where it served as the book-running lead manager. The company’s wholly-owned subsidiary, DAM Capital (USA) Inc., is incorporated in New York, USA and is registered as a Broker-Dealer with the SEC. Focusing on the Indian capital markets, one of the most dynamic and high-growth organized markets in the world, DAM Capital leverages deep domain knowledge across sectors and products, combined with the vast experience of its team, to provide strategic advisory and capital market solutions. The diverse and marquee clientele includes corporates, financial sponsors, institutional investors, and family offices. The company has provided services to 263 active clients, including registered FPIs spread across 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 had a team of 121 employees across all businesses.
Objective of the Dam Capital Advisors Limited IPO
The company will not receive any proceeds from the issue as the entire issue is comprised of OFS.
Rationale To Dam Capital Advisors Limited IPO
Fastest-growing merchant bank in India
DAM Capital is the fastest-growing merchant bank in India by revenue CAGR from FY22 to FY24, with the highest profit margin in FY24 among the peers considered. Recognized as one of the leading investment banks in India, DAM Capital achieved a market share of 12.1% in FY24, based on the number of initial public offerings (IPOs) and qualified institutional placements (QIPs) undertaken as the book-running lead manager. As of FY24, 67% of revenue comes from merchant banking, followed by stock broking at 28.3%. From the date of acquisition on November 7, 2019, to October 31, 2024, DAM Capital successfully executed 72 ECM transactions, comprising 27 IPOs, 16 QIPs, 6 OFS, 6 preferential issues, 4 rights issues, 8 buybacks, 4 open offers, and 1 IPOs of units by a REIT. Additionally, 23 advisory transactions were completed, including M&A advisory, private equity advisory, and structured finance advisory, along with the execution of block trades during this period. Further, in the six months ended September 30, 2024, and Fiscal 2024, DAM Capital served as book-running lead manager to 5 and 17 IPOs and QIPs, respectively. Since the acquisition, market share has consistently improved from 8.2% in FY21 to 12.1% in FY24, based on the number of IPOs and QIPs undertaken as the book-running lead manager.
Extensive coverage of corporates, financial sponsors and institutional investors, with repeat business
The company has established long-standing relationships with institutional investors, financial sponsors, corporates, and family offices, thanks to its experienced team and consistent client coverage. Many of these clients have provided repeat business, which reflects the company’s ability to maintain strong, long-term relationships. By offering a comprehensive range of products and services, DAM Capital is able to successfully navigate through periods of market volatility, ensuring clients remain confident during uncertain times.DAM Capital aims to foster repeat business by transitioning from being solely transaction-focused to becoming a strategic partner to clients. The company has executed significant repeat transactions with prominent clients. Noteworthy among these, Reliance Industries Limited undertook a Rs. 531,242 million rights issue in FY21. The Shapoorji Pallonji Group completed multiple transactions, notably a Rs. 15,000 million QIP in FY24 and a Rs. 54,300 million IPO of Afcons Infrastructure Limited. RBL Bank Limited engaged in several capital raises, including a Rs. 20,252.7 million QIP in FY20 and a Rs. 15,660 million preferential issue in FY21. Lastly, Kaynes Technology India Limited saw substantial activity with an Rs. 8,578.2 million IPO in FY23 and a Rs. 14,000 million QIP in FY24. These key transactions highlight DAM’s robust engagement with major corporate clients, driving substantial financial activity.
Valuation of Dam Capital Advisors Limited IPO
DAM Capital Advisors Limited, an Indian investment bank, offers expertise in ECM, M&A, PE, and institutional equities. Founded in 1993, it rebranded as DAM Capital in 2020, with a subsidiary in the USA. DAM is one of the leading investment banks in India, with a 12.1% market share based on a number of IPO offerings. India’s strong economic growth has increased the demand for capital and financial services. In FY24, the Indian capital market experienced significant growth compared to FY23, with the number of issues rising from 234 in FY23 to 316 in FY24. As of October 2024, there have been 215 issues recorded for FY25. During FY24, approximately Rs. 619 billion was raised through primary markets, which included a total of 76 IPOs. In terms of volume, IPOs and FPOs accounted for 46% of total issuances, which encompassed IPOs, FPOs, InvITs, REITs, rights issues, and QIPs. Further, till October 2024, IPOs and FPOs made up 40% of the total issues based on volume. On the financial front, DAM Capital reported the highest growth in total income, achieving a CAGR of 38.8% between FY22 and FY24. The company’s EBITDA rose to Rs. 1,030.2 million in FY24, up from Rs. 342.7 million, reflecting a CAGR of 73.4%. Additionally, the profit after tax increased to Rs. 705.2 million in FY24, compared to Rs. 219 million in FY22, representing a CAGR of 79.4%. Notably, DAM Capital had the highest profit margin among its peers, at 38.7% in FY24 and the first half of FY25. The issue is valued at a price-to-earnings (P/E) ratio of 28.4x on the upper price band based on FY24 earnings, which is relatively expensive compared to its peers. However, considering the company’s improving financials, its rapidly growing merchant banking business, and favourable industry trends, we recommend a “SUBSCRIBE” rating for the issue.
What is the Dam Capital Advisors Limited IPO?
DAM Capital Advisors IPO is a book built issue of Rs 840.25 crores. The issue is entirely an offer for sale of 2.97 crore shares. Login to your account now.
How to apply for the Dam Capital Advisors Limited IPO through StoxBox?
To apply for the Dam Capital Advisors Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Dam Capital Advisors Limited IPO open?
Dam Capital Advisors Limited IPO is opening on 19th December 2024. Apply Now
What is the lot size of the Dam Capital Advisors Limited IPO?
The Lot Size of Dam Capital Advisors Limited IPO is 53 equity shares . Login to your account now
When is the Dam Capital Advisors Limited IPO allotment date?
The allotment Date for Dam Capital Advisors Limited IPO is 24th December 2024. Login to your account now.
When is the Dam Capital Advisors Limited IPO listing date?
The listing Date for Dam Capital Advisors Limited IPO is 27th December 2024. Login to your account now
What is the minimum investment required for the Dam Capital Advisors Limited IPO?
In the Retail segment the minimum investment required is Rs. 14,999. Login to your account now
What is the maximum investment allowed for the Dam Capital Advisors Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 194,987. Login to your account now
What are the risks associated with investing in the Dam Capital Advisors Limited IPO?
- The ability to attract and retain clients, investors, and employees is highly dependent on reputation. Any reputational damage caused by non-compliance with the regulatory framework, inadequate due diligence standards, incorrect advice provided to clients, or failure to raise capital for clients in a timely manner can significantly affect the business and results of operations.
- DAM Capital competes directly or indirectly with various companies in the financial services industry, including merchant banking, broking, and financial advisory firms. Many competitors may have significantly greater capital, resources, and a broader range of financial products and services.
- The company’s merchant banking and institutional equities are highly dependent on market and economic conditions. Any adverse market or economic conditions could significantly impact the business.
When will the Dam Capital Advisors Limited IPO shares be credited to my Demat account?
The Dam Capital Advisors Limited IPO be credited to the account on allotment date which is 26th December 2024. Login to your account now
Where can I find the Dam Capital Advisors Limited IPO prospectus?
The prospectus of Dam Capital Advisors Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Dam Capital Advisors Limited IPO?
| IPO Open Date | Thursday, December 19, 2024 |
| IPO Close 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 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 23, 2024 |
