DAM Capital Advisors Limited is an investment bank in India. The company plans to raise Rs 840.25 crores. The issue is entirely an offer for sale of 2.97 crore shares
IPO opens
December 19, 2024
IPO Closes
December 23, 2024
IPO Size (Rs.)
₹840.25 Cr
Breakup
OFS only
Face Value:
₹ 2
IPO Price in Rs :
₹269 to ₹283 per share
Minimum Lot
53 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
BRLM
Nuvama Wealth Management
Registrar
Link Intime India Pvt Ltd.
About DAM Capital Advisors:
DAM Capital, was incorporated on 7th May, 1993.
It is one of the leading investment banks in India with a market share of 12.1%.
They provide a wide range of financial solutions in areas of:
Merchant Banking comprising equity capital markets. mergers and acquisitions, private equity , and structured finance advisory; and
Institutional Equities comprising broking and research.
Dharmesh Anil Mehta, Sonali Dharmesh Mehta and Boombucket Advisors Private Limited are the company promoters.
Financials :DAM Capital Advisors IPO
Financial Details (₹ In Cr)
2024(06)
2024(12)
2023(12)
2022(12)
Revenue from Operations
107.75
180.04
84.93
93.37
Revenue Growth (%)
–
111.99%
-9.04%
–
EBITDA
60.53
101.06
18.23
33.13
EBITDA Margin (%) as stated
56.90%
56.60%
21.60%
36.30%
Net Profit for the period
43.78
70.52
8.67
21.9
Net Profit (%) as stated
39.95%
38.75%
10.20%
23.17%
Equity Share Capital
14.14
14.14
14.14
14.14
Reserves#
182.89
142.65
73.54
66.98
Net Worth
197.03
156.79
87.68
81.12
Total Borrowings
4.75
4.93
3.29
1.41
NAV (₹)
27.87
22.18
12.4
11.48
ROE (%)
23.98%
54.72%
9.47%
28.53%
Post issue Share Capital
14.14
FV
2.0
IPO price
283.0
EPS Fy24
10.0
PE
28.4
EPS Fy25 (annualized)
12.4
PE (annualized)
22.9
Market cap in cr.
2,001
Market cap / Sales
11.11
Anchor: DAM Capital Advisors IPO
DAM Capital Advisors Limited raised ₹251.4 crore from 33 anchor investors. The anchor investors included names like Nomura Group, Goldman Sachs, Ashoka Whiteoak Capital, HSBC Global, HDFC Mutual Fund, Nippon Life India, Kotak Mahindra, Aditya Birla Sun Life, Bandhan Mutual Fund, and Life Insurance Corporation of India.
Salient Points: DAM Capital Advisors IPO
The domestic broking industry is estimated at Rs 390-410 bn as of FY24, and is expected to grow at a CAGR of 16%-18% to reach Rs 690-725 billion by FY29.
90% of OFS is by the financial investors and 10% of OFS by the promoter Dharmesh Mehta.
The financial investors selling are Multiples, Narotam Seksaria, RBL Bank, Chennai based NBFC Easyaccess.Most selling 60-80% of their stake.
DAM Capital, formerly IDFC Securities, garnered 2/3rd of revenue in FY24, from investment banking and 1/3rd from institutional broking.
Peers:
Particulars (Rs cr)
CMP (Rs)
Sales
EBITDA
EBITDA (%)
Net Profit
NPM(%)
P/E (x)
Mcap/ Sales
RoE (%)
DAM Capital
283
180
99.8
55.5
70.5
39.2
28.4(22.9)
11.1
43.4
ICICI Securities
845
5,049.00
3,372.00
66.8
1,697.00
33.6
13.3
4.4
43.3
IIFL Capital Services
346
2,218.00
933
42.1
513
23.1
15
4.3
28.7
JM Financial
134
4,786.00
2,768.00
57.8
877
18.3
20.8
2.7
10.3
Motilal Oswal
978
7,069.00
4,067.00
57.5
2,446.00
34.6
17
6.3
28
It had the highest net profit margin among peers as of FY24.
Business is asset light.
Dilution of 42% in the IPO.
company has reported good financial performance with Revenue/EBITDA/PAT growing at a CAGR of 38.9%/76.7%/79.5% respectively over the FY22-FY24
Has a subsidiary in US to market its products but not much contribution.
Aims to enter wealth management services.
PE (FY25 annualized) 22.9x ; PE FY24 28.4x
I intend to apply in DAM Capital Advisors IPO. DAM Capital Advisors is one of the leading merchant banks in India and provides services across the Merchant banking and Institutional Equity domains. Not cheap but given current market conditions in new issues, looks good.With IPO markets booming company should do well.
GMP as reported in media is 170 (60%)
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
