Last Updated:
Unlisted shares of DAM Capital Advisors Ltd are trading at Rs 463 in the grey market, reflecting a premium of Rs 180 (63.6%) over the upper price band of Rs 283.
DAM Capital Advisors IPO.
DAM Capital Advisors IPO: The initial public offering of domestic investment bank DAM Capital Advisors, which was opened on Thursday, is witnessing the second day of bidding on Friday. The Rs 840.25-crore IPO was fully subscribed within the three hours of bidding on Thursday. Till 5:00 pm on the second day of bidding on Friday, the IPO received a 7.08 times subscription, garnering bids for 14,72,48,469 shares as against 2,08,04,632 shares on offer.
So far, the retail category has received a 9.12 times subscription, while the non-institutional category (NII) got a 11.54 times subscription. The QIB category has received a 6 per cent subscription.
The price band for the offering has been set at Rs 269 to Rs 283 per share.
DAM Capital Advisors IPO: Key Dates
Closing Date: December 23 (Monday)
Allotment Finalisation: December 24
Listing on BSE and NSE: December 27 (Friday)
DAM Capital Advisors IPO GMP Today
As per market observers, the unlisted shares of DAM Capital Advisors Ltd are trading at Rs 463 in the grey market, reflecting a premium of Rs 180 (63.6%) over the upper price band of Rs 283. This indicates a potentially strong listing on December 27.
DAM Capital Advisors IPO: Analysts’ Recommendations
Most brokerage firms have given a ‘subscribe’ rating to the IPO for listing gains.
Rajan Shinde, research analyst at Mehta Equities, said, “DAM Capital Advisory Ltd has demonstrated a strong market leadership, holding a 12.1 per cent share in IPOs and QIPs in fiscal 2024, with consistent improvement from 8.2 per cent in fiscal 2021. We think successful execution of high-value QIPs as a sole lead manager further underscores its transaction leadership and adaptability to specialized products like buybacks, delisting, and open offers, catering to evolving corporate needs.”
On the financials, the company delivered an impressive turnaround, with revenues growing by 112 per cent in FY24 after a degrowth of 9 per cent in FY 2023, while net profit surged by nearly 713 per cent in FY24 compared to a decline of 60 per cent in FY 2023, he said.
“We recommend investors to ‘subscribe’ the DAM Capital Advisory IPO for listing gain perspective only.”
Another brokerage firm Choice in its IPO note said that at the higher price band of Rs 283, DAM Capital is seeking a P/E ratio of 28.4x based on its FY24 EPS of Rs 10, which is higher than the average of its peers.
“Looking ahead, the favorable outlook for capital markets, increased investor participation, and India’s status as one of the fastest-growing economies are expected to benefit the company in long run. However, the high valuation being demanded raises concerns. Thus, we recommend an ‘subscribe for long term’ rating for this issue,” Choice stated.
Another brokerage firm Bajaj Broking also granted a ‘subscribe for long term’ rating to the IPO.
Bajaj said, “DAM Capital Advisors Limited has a promising outlook, driven by its strong market position, diverse client base, and robust financial performance… The strong financial performance, with a total income of Rs 182 crore in FY24 and a net profit of Rs 70.52 crore, reflects the company’s solid valuation and growth potential.”
It also listed some threats that might affect DAM Capital’s performance, which include market volatility, regulatory changes, intense competition, economic downturns, and technological disruptions.
DAM Capital Advisors IPO: More Details
The DAM Capital Advisors IPO is entirely an offer for sale of 2.97 crore shares. Its price band has been fixed at Rs 269 to Rs 283 per share.
The minimum lot size for an application is 53. The minimum amount of investment required by retail investors is Rs 14,999. The minimum lot size investment for small NII is 14 lots (742 shares), amounting to Rs 2,09,986, and for big NII, it is 67 lots (3,551 shares), amounting to Rs 10,04,933.
Nuvama Wealth Management Limited is the book running lead manager of the DAM Capital Advisors IPO, while Link Intime India Private Ltd is the registrar for the issue.
