DAM Capital Advisors IPO:- The DAM Capital Advisors IPO has garnered significant attention in the financial market due to its promising growth metrics and positive grey market premium (GMP). This article provides a comprehensive guide for Indian investors to understand the key details about this IPO, including its subscription status, GMP trends, and expert reviews on whether you should consider subscribing.
DAM Capital Advisors IPO
The DAM Capital Advisors IPO has garnered significant attention in the Indian financial market. Opening for public subscription on December 19, 2024, and closing on December 23, 2024, this ₹840.25-crore issue is entirely an Offer for Sale (OFS) of 2.97 crore shares. With a price band of ₹269 to ₹283 per share, the IPO has seen robust demand from investors across segments. As of now, it is subscribed 15.24 times, including 14.02 times in the retail category, 30.49 times for Non-Institutional Investors (NII), and 5.88 times for Qualified Institutional Buyers (QIBs).
The company is a leading merchant banker in India, showcasing an impressive revenue CAGR of 39% (FY22-FY24) and boasting a strong EBITDA margin of 59.1%. Analysts have recommended subscribing to the IPO, citing its high profitability, strong return on equity (43.4%), and leadership in high-margin investment banking. With a Grey Market Premium (GMP) of ₹161 per share, the implied listing price stands at ₹444, reflecting a 57% premium over the upper price band.
DAM Capital Advisors IPO Details
| Particulars | Details |
| IPO Name | DAM Capital Advisors IPO |
| IPO Type | 100% Offer for Sale (OFS) |
| IPO Size | ₹840.25 crore (2.97 crore shares) |
| Price Band | ₹269 to ₹283 per share |
| IPO Opening Date | December 19, 2024 |
| IPO Closing Date | December 23, 2024 |
| Face Value | ₹1 per share |
| Listing on | BSE and NSE |
| Allotment Date (Tentative) | Within 5-7 days after the IPO closes |
| Listing Date (Tentative) | Expected by the last week of December 2024 |
| Grey Market Premium (GMP) | ₹161 per share (as of today) |
| Implied Listing Price | ₹444 per share (57% premium to upper price band) |
| Category | Finance |
DAM Capital Advisors IPO GMP Today
The DAM Capital Advisors IPO GMP (Grey Market Premium) today is ₹161 per share, indicating robust demand in the unofficial market. This translates to a trading price of ₹444 per share in the grey market, approximately 57% higher than the upper IPO price band of ₹283.
- GMP (Grey Market Premium): ₹161 per share
- Implied Listing Price: ₹444 per share (₹283 IPO price + ₹161 GMP)
- Premium Percentage: 57%
What GMP Means for Investors?
A high GMP suggests positive sentiment among investors and a potential for strong listing gains. Market observers predict a 57% return on investment for IPO allottees, making this IPO an attractive short-term bet.
DAM Capital Advisors IPO Subscription Status
As per BSE data, the IPO has been subscribed 15.24 times as of now:
- Retail Investors: 14.02 times.
- Non-Institutional Investors (NII): 30.49 times.
- Qualified Institutional Buyers (QIBs): 5.88 times.
The overwhelming response across investor categories reflects strong confidence in DAM Capital Advisors’ fundamentals and growth potential.
Company Overview & Performance Metrics
DAM Capital Advisors Ltd is a leading merchant banking firm in India, showcasing impressive growth and profitability metrics:
- Revenue CAGR: 39% (FY22-FY24)
- EBITDA Margin: 59.1% (peer average: 50.3%)
- Return on Equity (ROE): 43.4% (peer average: 24.1%)
- PE Multiple: 28.4x
Expert Reviews and Recommendations
- Nirmal Bang:- DAM Capital Advisors stands out for its growth, profitability, and operational efficiency. Its focus on high-margin investment banking makes it an attractive proposition.
- KRChoksey Securities:- The company’s stellar growth metrics, robust deal pipeline, and focus on high-margin merchant banking make it a compelling investment.
Strengths of DAM Capital Advisors IPO
- Market Leadership: Established as a key player in high-margin investment banking.
- Financial Performance: Exceptional growth in revenue, EBITDA, and profit margins.
- Sector Tailwinds: Positioned to capitalize on India’s expanding capital markets.
Risks and Concerns
- Dependence on Market Conditions: Earnings are sensitive to market fluctuations.
- Valuation: A PE Multiple of 28.4x is slightly above peers, warranting caution.
- Offer for Sale (OFS): The entire IPO proceeds go to existing shareholders, with no direct benefit to the company.
Should You Apply for DAM Capital Advisors IPO?
The DAM Capital Advisors IPO offers a promising opportunity for investors seeking exposure to India’s thriving merchant banking sector. Strong financials, a robust growth trajectory, and a positive GMP suggest potential listing gains and long-term growth prospects.
However, investors should weigh the slightly higher valuation against the company’s growth potential. For retail investors looking for both short-term and long-term gains, experts recommend subscribing to this IPO.
Conclusion
The DAM Capital Advisors IPO has been a highlight of the Indian IPO market, with strong fundamentals and positive investor sentiment. If you’re looking to invest in a high-margin, growth-focused merchant banking firm, this IPO deserves your attention.
FAQ’s
What is DAM Capital Advisors IPO GMP today?
GMP today is ₹161, indicating a premium of 57% over the IPO price.
How much is the DAM Capital Advisors IPO subscribed?
The IPO is subscribed 15.24 times, with strong demand from NIIs and retail investors.
Should I apply for DAM Capital Advisors IPO?
Yes, based on expert reviews and strong fundamentals, applying for this IPO is recommended.
When will DAM Capital Advisors IPO list on stock exchanges?
The listing date is expected shortly after the close of the subscription period, typically within a week.
What are the risks associated with DAM Capital Advisors IPO?
Market dependency and higher valuations are potential risks to consider.
What are the key dates for DAM Capital Advisors IPO?
- Opening Date: December 19, 2024
- Closing Date: December 23, 2024
- Listing Date: Expected within a week after the subscription period ends.
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