Initial Public Offerings (IPOs) in India have been buzzing this month, with multiple companies successfully attracting investors. One of the standout IPOs is DAM Capital Advisors Limited, an investment banking firm. Here’s a detailed analysis of its IPO, including subscription details, GMP trends, and whether it’s a good investment.
DAM Capital Advisors IPO Overview
- IPO Dates: December 19, 2024 – December 23, 2024
- Price Band: ₹269 to ₹283 per share
- Lot Size: 53 shares
- Total Issue Size: ₹840.25 crores (entirely offer-for-sale)
- Listing Date: December 27, 2024
- Lead Manager: Nuvama Wealth Management Limited
- Registrar: Link Intime India Private Ltd
IPO Subscription Details
DAM Capital Advisors IPO received a tremendous response from investors, getting subscribed 81.88 times overall. This high subscription rate highlights robust investor confidence and reflects favorable market conditions, particularly for the financial services sector. It underscores the strong appeal of DAM Capital’s growth story and future potential. Here is the breakdown of the subscriptions:
| Category | Subscription (Times) | Shares Offered | Shares Bid For |
|---|---|---|---|
| QIB | 166.33 | 59,24,182 | 98,53,97,571 |
| NII | 98.47 | 44,43,135 | 43,75,19,399 |
| Retail | 26.8 | 1,03,67,315 | 27,78,15,135 |
| Employee | 40.09 | 70,000 | 28,06,244 |
| Total | 81.88 | 2,08,04,632 | 1,70,35,38,349 |
Anchor Investors
DAM Capital Advisors raised ₹251.48 crore from anchor investors on December 18, 2024. These shares are subject to a lock-in period, which partially ends on January 23, 2025.
| Anchor Portion Size | ₹ 251.48 crore |
|---|---|
| Shares Offered | 88,86,268 |
| Lock-in Period | 30 Days (50% Shares) / 90 Days (Remaining Shares) |
Financial Performance of DAM Capital Advisors
DAM Capital has shown impressive growth in revenue and profits over recent years.
| Metrics | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|
| Revenue (₹ Cr) | 182 | 85.04 | 94.51 |
| Profit After Tax (₹ Cr) | 70.52 | 8.67 | 21.9 |
| ROE (%) | 54.72 | – | – |
| PAT Margin (%) | 38.75 | – | – |
The revenue grew by 114%, while PAT surged by an astounding 713% in FY 2024 compared to FY 2023.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for DAM Capital Advisors IPO has been strong, reflecting positive investor sentiment. As of December 23, 2024, the GMP is trading at ₹47 per share, indicating a potential listing price of approximately ₹325 to ₹330. However, GMP trends can be volatile and should not be the sole deciding factor.
Key Highlights
- Strong Subscription Numbers: The IPO was heavily oversubscribed in the QIB category (166.33 times), reflecting high institutional confidence.
- Impressive Financials: Significant growth in revenue and profits over recent years makes it an attractive proposition.
- Experienced Management: DAM Capital has executed over 72 ECM transactions and advised on 23 M&A transactions.
Potential Risks
- Fully Priced IPO: At a P/E ratio of 28.37x (FY 2024 earnings), the IPO appears fully priced.
- Industry Trends: The financial services industry is highly competitive and sensitive to market cycles.
Should You Invest?
DAM Capital Advisors is one of the fastest-growing investment banks in India, with excellent profit margins and strong operational metrics. Investors looking for medium to long-term gains may consider this IPO. However, due diligence is essential, as the IPO is fully priced and market risks persist.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investing in IPOs involves risks, and readers should consult their financial advisors before making any investment decisions. The author and FinGuys are not SEBI-registered analysts.