IPO listed on 27 Dec'24
DAM Capital Advisors Ltd
Minimum Investment
₹ 14,999 / 53 shares
Grey market premium
₹ 143 (51% premium)
Issue price
₹ 283
Listing price
₹ 393
Listing gains
110 (39%)
Listing on
Dec 27, 2024
Our Verdict:
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- DAM Capital Advisors Ltd (DAM Capital) has demonstrated robust growth in both revenue and profits in recent years, boasting the highest profit margin among its competitors.
- From a valuation perspective, the IPO is attractively priced with a P/E ratio of 28x based on FY24 earnings. Additionally, the grey market premium for the IPO also suggests a strong debut on the bourses.
- Given the company's solid track record and strong industry tailwinds, investors may consider subscribing to the IPO with a long-term perspective.
About the company
Founded in
7 May'93
Managing director
Dharmesh Mehta
- DAM Capital is a prominent investment bank based in India, providing an extensive array of financial services. These include investment banking, with specialties in equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory; along with institutional equities services like broking and research.
- Since its acquisition on November 7, 2019, up until October 31, 2024, the company has successfully completed 72 ECM transactions. Additionally, it has managed 23 advisory transactions that cover M&A, private equity, and structured finance, as well as executing several block trades.
STRENGTHS
- Market Leadership: DAM Capital stands out as the fastest-growing merchant bank in India by revenue CAGR from FY22 to FY24 and boasts the highest profit margin among its competitors for FY24. It holds a significant presence in the industry with over 12% market share in IPO and QIP dealings for FY24.
- Impressive Financial Growth: DAM Capital has exhibited significant growth, with total income and net profit seeing substantial compounded annual growth rates (CAGRs) of 39%, and 79%, respectively, from FY22 to FY24.
- Improving Profitability Margins: DAM Capital’s net profit margin surged from 10.20% in FY23 to 38.75% in FY24, further improving to 39.95% in the six months period ended September 30, 2024.
- Strong Return Metrics: DAM Capital boasts a Return on Equity of 55% as of FY24, which indicates the management’s strong ability to generate profits from the equity available to the business.
RISK FACTORS
- Challenges in Stock Broking: DAM Capital has previously experienced losses in its stock broking segment during FY23 and FY22. This segment accounted for 39.5% of total income in the six months ending September 20, 2024. A potential decrease in brokerage fees could adversely impact the firm’s business and financial health.
- Negative Cash Flows: DAM Capital recorded negative cash flows from operating activities in FY24 and may continue to face negative cash flows in the future. Sustained negative cash flows could detrimentally affect the firm’s financial stability.
- High Attrition Rates: DAM Capital has faced high employee turnover, with attrition rates of 18% in FY24, 12% in FY23, and 24% in FY22. Consistently high attrition could lead to increased hiring costs or a shortage of skilled staff.
Issue details
Issue type
Mainstream
Issue size
₹ 840.25 crore
Fresh Issue
₹ -
OFS
₹ 840.25 crore
Price range
₹ 269 - 283
Lot size
53 shares
Issue Objective
This is purely an offer for sale (OFS), which means that the company itself will not receive any of the proceeds from the offer. Instead, all proceeds will be directed to the Selling Shareholders.
Dates
Bidding open
19 Dec'24
Bidding close
23 Dec'24
Allotment date
24 Dec'24
Refund date
26 Dec'24
Listing
27 Dec'24
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>35%
Retail individual investors
>15%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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