DAM Capital Advisors Limited is set to launch its initial public offering (IPO) from December 19 to December 23, 2024, aiming to raise approximately ₹840.25 crores through an offer-for-sale of 2.97 crore equity shares. The company operates as an investment bank, providing a wide range of financial solutions, including equity capital markets, mergers and acquisitions, and private equity advisory services. With a price band established between ₹269 and ₹283 per share, DAM Capital Advisors has demonstrated strong financial growth, achieving a 39% compound annual growth rate (CAGR) in revenue and an 80% increase in net profit from FY22 to FY24.
₹130
₹283
₹393
Expert Opinions
Market sentiment for the DAM Capital Advisors IPO is largely positive, reflecting strong investor interest in the financial services sector. Company strengths include a proven track record in equity capital markets and mergers and acquisitions, with impressive financial growth, as evidenced by a 713% increase in profit after tax (PAT) to ₹70.52 crores in FY24. However, risks and challenges involve reliance on market conditions and economic activity, which can significantly impact revenue streams.
The valuation analysis indicates a price band of ₹269 to ₹283 per share for an offer size of ₹840.25 crores, which seems reasonable given the company’s robust growth metrics and market position. From a long-term investment perspective, DAM Capital Advisors is well-positioned to benefit from increasing capital market activity, making it an attractive option for investors seeking exposure to a dynamic player in the investment banking sector.
Investor Considerations
Investors considering the DAM Capital Advisors IPO should assess several key factors. Company performance and fundamentals are impressive, with a revenue CAGR of 38.77% from FY22 to FY24 and a significant increase in profit after tax, reflecting strong operational efficiency. The sector outlook is positive, as the demand for investment banking services continues to grow amid increasing market activity and investor interest in equities.
The IPO valuation, set between ₹269 and ₹283 per share for a total offer size of ₹840.25 crores, appears reasonable given the company’s strong market position and financial growth. Growth prospects are promising, with DAM Capital holding a 12.1% market share as a book-running lead manager in IPOs and qualified institutional placements. However, risk factors include market volatility and dependence on economic conditions that can affect revenue streams. A long-term investment horizon is advisable, as DAM Capital Advisors is well-positioned to capitalize on the expanding financial services market in India.
| Date | GMP | Trend |
|---|---|---|
| 26 Dec 2024 15.40 | ₹130 | Down |
| 25 Dec 2024 11.21 | ₹170 | --- |
| 24 Dec 2024 11.01 | ₹170 | Up |
| 23 Dec 2024 11.52 | ₹160 | --- |
| 22 Dec 2024 12.05 | ₹160 | --- |
| 21 Dec 2024 12.38 | ₹160 | Down |
| 20 Dec 2024 10.45 | ₹170 | --- |
| 19 Dec 2024 18.03 | ₹170 | Up |
| 18 Dec 2024 11.54 | ₹100 | --- |
| 17 Dec 2024 12.09 | ₹100 | --- |
| 16 Dec 2024 17.58 | ₹100 | Up |
| 15 Dec 2024 13.22 | ₹00 | --- |
| 12 Dec 2024 12.43 | ₹00 | --- |
| 11 Dec 2024 11.15 | ₹00 | --- |
FAQs
The Grey Market Premium showed strong accuracy in predicting DAM Capital Advisors’ listing performance. While the GMP of ₹130 predicted a premium of 45.94% over the issue price, the stock delivered a similar gain of 38.87%. With a small prediction error of 4.84%, the GMP effectively captured both the direction and approximate magnitude of the listing gains, proving to be a reliable indicator in this case.
DAM Capital Advisors IPO Current GMP is ₹130.
DAM Capital Advisors IPO Expected Returns is 45.94%.
DAM Capital Advisors IPO estimated listing price is ₹413.