DAM Capital Advisors IPO: From price band to GMP, here are 10 key things to know before issue opens on December 19

DAM Capital Advisors IPO: The initial public offering of DAM Capital Advisors opens for subscription on December 19 and will close on December 23. The company aims to raise ₹840.25 crore through the IPO and list the shares on NSE and BSE. 

Here are 10 key things investors need to know about the public offer before subscribing to the issue.

1) IPO size: The IPO is entirely an offer for sale of 2.97 crore shares with no fresh issue component.

The issue will include several shareholders offloading their stakes through the offer for sale (OFS) mechanism. Among the investor-selling shareholders, Multiples Alternate Asset Management Private Limited is set to offer up to 8,714,400 equity shares. Narotam Satyanarayan Sekhsaria will divest up to 7,042,400 equity shares, while RBL Bank Limited plans to sell up to 5,771,000 equity shares. Additionally, Easyaccess Financial Services Limited will offer up to 5,064,250 equity shares. From the promoter group, Dharmesh Anil Mehta will offload up to 3,098,850 equity shares as part of the IPO.

2) Price band: The company is offering its shares at ₹269-283 apiece, and investors can bid for 53 shares in 1 lot, requiring a minimum investment of ₹14,999.

3) Objective: Since the IPO is entirely an OFS, the company will not receive any funds from the share sale. The IPO will provide promoters and selling shareholders with an exit route.

4) Important Dates: The allotment for the DAM Capital Advisors IPO is expected to be finalized on Tuesday, December 24, 2024. DAM Capital Advisors IPO will list on BSE, NSE with tentative listing date fixed as Friday, December 27, 2024.

5) Issue structure: Not more than 50% of the offer is reserved for QIB investors, Not less than 35% for retail investors and not less than 15% for non-institutional investors.

6) About the firm: DAM Capital Advisors Limited is a prominent investment bank in India, providing a comprehensive suite of financial services. Its offerings include investment banking solutions such as equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory. Additionally, the company delivers institutional equity services, including broking and research.

7) Financials: Between the financial years ending March 31, 2023, and March 31, 2024, DAM Capital Advisors witnessed a significant growth trajectory, with its revenue surging by 114 percent and profit after tax (PAT) soaring by an impressive 713 percent.

8) Peers of the Company: ICICI Securities, IIFL Capital, JM Financial, and Motilal Oswal Financial Services are the listed peers of DAM Capital. DAM Capital has a price-to-earnings ratio of 28.35x, ICICI Securities of 16.96x, and IIFL Capital of 20.56x. Meanwhile, the PE ratios of JM Financial and Motilal Oswal Financial Services stand at 32.66x and 23.57x, respectively.

9) Lead manager and Registrar: 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.

10) DAM Capital Advisors GMP: The company's shares in the grey market continued trading at a premium of ₹108. This indicates an estimated listing price of ₹391, up 38.17 percent from the IPO price of ₹283. The GMP was the same as in the previous session (December 17).