6 days ago
DAM Capital Advisors made a healthy stock market debut, with shares getting listed at Rs 393 per share, a 38.87% premium to its issue price of ₹283 per share on the NSE. On the BSE, the stock made debut at Rs 392.90 per share, a 38.83% premium to its issue price.
The issue had opened for public subscription on December 19 to raise about ₹840 crore in the primary market.
The listing was below grey market premium (GMP) estimates as the shares were trading in the unlisted markets ahead of the debut at a premium of over 50%.
The IPO of DAM Capital Advisors, the fastest-growing merchant bank in India with a strong revenue CAGR from FY22 to FY24, witnessed an overwhelming response, with a subscription of 81.88 times.
While the company has demonstrated impressive growth in revenue and profit, a sharp rise in profitability in recent years warrants scrutiny, said Shivani Nyati of Swastika Investmart. The IPO is a complete offer for sale, and the valuation appears fully priced.
Given the strong investor interest, robust growth trajectory, and attractive GMP, Nyati said that DAM Capital is poised for a strong listing.
Prashanth Tapse of Mehta Equities recommended conservative allotted investors to book profits if the stock lists above expectations. "While long term investors should consider taking risk on the post listing trend on the company to hold it for long term despite knowing short term volatility and risk in the markets. For non-allotted investors, we advise to accumulate if we get dips post listing due to profit booking attempts."
The IPO, which closed for public bidding on December 23, had a fixed price band of ₹269-283 per share for its public issue.
The IPO included entirely an offer-for-sale of 2.96 crore equity shares by promoter and investors. Since the IPO is entirely an OFS, the proceeds from the offer will go to the selling shareholders.
Investment banker Dharmesh Mehta-led DAM Capital Advisors has raised ₹251.48 crore via anchor book on December 18, a day before the IPO opening.
Marquee global investors such as Nomura, Goldman Sachs, HSBC Global, Carmignac Portfolio, Neuberger Berman Investment Funds, and Societe Generale participated in the DAM's anchor book.
DAM Capital Advisors Ltd is touted to be the fastest growing merchant 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.
Nuvama Wealth Management Ltd was the book running lead manager of the DAM Capital Advisors IPO, while Link Intime India Private Ltd was the registrar for the issue.
