DAM Capital Advisors IPO will open on December 19, 2024, and close on December 23, 2024. DAM Capital Advisors Limited, incorporated in 1993, is a SEBI-registered stockbroker, merchant banker, and research analyst.
In 2006, Infrastructure Development Finance Company (IDFC) acquired the company and later on, in 2019, the company was sold to Dharmesh Anil Mehta. In this blog, we’ll get into the DAM Capital Advisors IPO details, listing, and peer analysis.
DAM Capital Advisors IPO Date 2024
The key pointers for the DAM Capital Advisors IPO date are:
- Bidding Opening Date: December 19, 2024
- Bidding Closing Date: December 23, 2024
- Basis of Allotment Date: December 24, 2024
- Initiation of Refunds (in case of less or no allotment): December 26, 2024
- Shares Credited to Your Demat Account: December 26, 2024
- IPO Listing Date: December 27, 2024
- Listing on Exchange: NSE and BSE
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DAM Capital IPO Issue Size
DAM Capital IPO valuation is set at around ₹840 crores with only the OFS component.
Here are the key details of DAM Capital Advisors IPO:
- Price Band: ₹269 – ₹283 per share
- Face Value: ₹2 per share
- Lot Size: 53 Shares
- DAM Capital IPO Issue Size and Amount: 2,96,90,900 shares (amounting to ₹840.25 crores)
- Offer for Sale and Amount: 2,96,90,900 shares (amounting to ₹840.25 crores)
DAM Capital Advisors IPO Proceeds Usage
DAM Capital Advisors IPO proceeds will go to the promoter-selling shareholders in the proportion of shares sold by each of them.
DAM Capital Advisors IPO Reservations
DAM Capital Advisors IPO reservations to different investors are:
- For QIBs: Not more than 50% of the net offer
- For NIIs: Not less than 15% of the net offer
- For Retail Investors: Not less than 35% of the net offer
DAM Capital Advisors IPO Lot Size
DAM Capital Advisors IPO lot size is 53 shares, wherein bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply in this IPO are:
| Applicant Type | Lot Size | Shares | Amount (in ₹) |
|---|---|---|---|
| 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 current promoters of DAM Capital Advisors are:
- Dharmesh Anil Mehta
- Sonali Dharmesh Mehta
- Boombucket Advisors Private Limited
Multiples Alternate Asset Management Private Limited, Narotam Satyanarayan Sekhsaria, RBL Bank Limited, Easyaccess Financial Services Limited, and Dharmesh Anil Mehta are the selling shareholders for the total DAM Capital IPO issue size.
DAM Capital Advisors IPO: Company Overview
DAM Capital Advisors is one of the leading merchant banks in India with a market share of 12.1% in FY24. The company provides solutions in the areas of merchant banking comprising equity capital markets, mergers and acquisitions, private equity, and structured finance advisory. Along with that, it also provides services to institutional equities including broking and research.
As per the revenue CAGR from FY22 to FY24, DAM Capital Advisors is the fastest-growing merchant bank in India. Out of the total revenue earned in the first half of FY25, merchant banking contributed 54.06% while the broking segment contributed 39.47%.
The company provides services to 263 clients across India, USA, UK, Hong Kong, Australia, etc. From November 7, 2019 to October 31, 2024, the company has successfully executed 27 IPOs, 16 QIPs, 6 OFS, 6 preferential issues, 4 right issues, 8 buybacks, and 4 open offers.
WHY SMC
- 20 Lac+ unique clients
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- Advance Technical Analysis
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DAM Capital Advisors IPO: Financial Performance
DAM Capital Advisors’ key financials for different periods are as follows:
| Particulars | September 30, 2024 | March 31, 2024 | March 31, 2023 | YoY Change (%) |
|---|---|---|---|---|
| Revenue | 109.58 | 182.00 | 85.04 | 114% |
| Profit After Tax | 43.78 | 70.52 | 8.67 | 713% |
| Assets | 257.45 | 214.68 | 1,201.16 | -82% |
| Total Borrowings | 4.75 | 4.93 | 3.29 | 50% |
| EBITDA | 62.36 | 103.02 | 18.34 | 462% |
| Revenue per Employee | 0.91 | 1.64 | 0.85 | 93% |
*(in ₹ crores)
- In FY24, DAM Capital Advisors’ revenue and PAT grew by 114% YoY and 713% YoY, respectively.
- In FY24, assets decreased by 82% YoY, and total borrowings also rose by 50% YoY.
- From FY23 to FY24, the EBITDA of DAM Capital Advisors rose by 462%.
- Revenue per employee has been increased by 93% YoY in FY24.
Peer Analysis of DAM Capital Advisors IPO
The comparison of DAM Capital Advisors’ performance with its peers in the same industry is as follows:
| Company Name | EPS (₹) | ROE (%) | PAT Margin (%) | EBITDA Margin (%) | Employee Costs as % of Revenue |
|---|---|---|---|---|---|
| DAM Capital Advisors | ₹9.98 | 54.72% | 38.75% | 56.60% | 35.90% |
| ICICI Securities | ₹52.51 | 50.09% | 33.59% | 66.80% | 17.31% |
| IIFL Capital Services | ₹16.73 | 32.72% | 23.01% | 42.30% | 20.48% |
| JM Financial | ₹4.29 | 0.25% | 0.57% | 40.70% | 16.46% |
| Motilal Oswal Financial Services | ₹41.16 | 32.50% | 34.30% | 57.80% | 18.65% |
*(For FY24 ending)
- In FY24, DAM Capital Advisors’ EPS was quite low compared to its peers.
- DAM Capital Advisors ROE (Return on Equity) and PAT Margins were highest in the industry in FY24.
- EBITDA margin is competitive and in line with the peer performance in FY24.
- Employee cost as a percentage of revenue is quite high which needs to be taken care of by the company.
Risk Factors in DAM Capital Advisors IPO
DAM Capital Advisors IPO GMP is ₹108 as of December 16, 2024 (at 15:25) and it is expected to list at a 38.16% gain. However, GMP is not the only criterion to bid for an IPO.
- The company is exposed to various risk factors which can eventually affect the business and investor’s perception.
- The company operates in a highly regulated set-up and any changes in laws or government policies can affect the operations.
- The merchant banking and institutional equities businesses are subject to changes in market and economic conditions.
- The stock broking segment had faced losses in the past and any decrease in brokerage fees could impact the cash flows and revenue.
- A major portion of the revenue is only from two income streams: advisory fee income, and brokerage, which can be affected by market conditions.
- Negative cash flows from operating activities in the past may continue in the future as well.
Merchant banking business is subject to the ability to attract or retain clients, investors, and employees, and the timely execution of the transactions.
DAM Capital Advisors IPO Contact Information
For inquiries related to the DAM Capital Advisors IPO details, you can contact at the following places:
Registered Office Address: PG-1, Ground Floor, Rotunda Building, Dalal Street, Fort, Mumbai 400 001, Maharashtra, India
Email: compliance@damcapital.in
Company Website: http://www.damcapital.in/
DAM Capital Advisors IPO Registrar Details:
Registrar Name: Link Intime India Private Limited
Phone: 91 810 811 4949
Email: damcapital.ipo@linkintime.co.in
For all the insights on DAM Capital Advisors IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App by opening demat account now.
FAQs
1. Who is the CEO of DAM Capital?
Dharmesh Anil Mehta is the CEO and Managing Director of DAM Capital Advisors and he has more than 25 years of experience in capital markets.
2. What is the old name of Dam Capital?
The old name of DAM Capital Advisors was IDFC Securities Limited before it was sold to Dharmesh Anil Mehta. Its current name was then adopted in July 2020.
3. Is DAM Capital Advisors listed?
DAM Capital Advisors is going to list on both the NSE and BSE platforms on December 27, 2024.
References:
https://www.damcapital.in/files/investorrelation/638698141609926454_DAM_Capital_Advisors_Limited_-_RHP.pdf
SMC Global Securities Research Team
Author: All Content is verified by SMC Global Securities.
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