The highly anticipated DAM Capital Advisors Limited IPO is closing today, December 23, 2024, marking the final day for investors to place their bids. With substantial market buzz, this IPO has captured attention due to its robust financial metrics, attractive grey market premium (GMP), and strong subscription figures. Below, we delve into the key aspects, including GMP trends, financial performance, subscription status, and expert opinions to help you decide whether to invest.
IPO Overview
DAM Capital Advisors’ IPO opened on December 19, 2024, with a price band ranging between ₹269 and ₹283 per share. The total issue size is approximately ₹840.25 crore, consisting entirely of an offer for sale (OFS) of 2.97 crore shares.
Key Details:
- IPO Price Band: ₹269 – ₹283 per share
- Lot Size: 53 shares
- Minimum Investment: ₹14,999
Subscription Status
As of the third and final day, the DAM Capital Advisors IPO has witnessed strong demand across all investor categories. By the latest update, the issue is oversubscribed 9.63 times, with significant participation from various segments:
- Retail Investors (RIIs): Subscribed 10.71 times
- Non-Institutional Investors (NIIs): Subscribed 18.15 times
- Qualified Institutional Buyers (QIBs): Subscribed 1.27 times
These figures underline the confidence among investors and suggest robust market sentiment.
Grey Market Premium (GMP)
The IPO has maintained an impressive GMP, reflecting heightened interest in the unlisted market. On December 23, the GMP stood at ₹161 per share, indicating that shares might list at approximately ₹444, a 57% premium over the upper price band.
GMP Trends:
- December 23: ₹161
- December 22: ₹170
- December 21: ₹160
- December 20: ₹135
This steady GMP uptick signals strong demand and potential for listing gains.
Company Financials
DAM Capital Advisors boasts a stellar financial track record, cementing its position as a leading merchant bank in India. Key highlights include:
- Revenue Growth: Achieved a 114% increase year-over-year as of March 31, 2024.
- Profit After Tax (PAT): Surged by an extraordinary 713% during the same period.
- Market Leadership: Fastest-growing merchant bank in India by revenue CAGR (FY22-FY24).
- Revenue Sources: 67% from merchant banking activities and 28.3% from stockbroking.
Since its acquisition in November 2019, the company has executed 72 ECM transactions, including 27 IPOs, and expanded its market share to 12.1% by FY24.
Important Dates
Investors should keep the following dates in mind:
- IPO Open Date: December 19, 2024
- IPO Close Date: December 23, 2024
- Basis of Allotment: December 24, 2024
- Refunds Initiated: December 26, 2024
- Credit to Demat Accounts: December 26, 2024
- Listing Date: December 27, 2024
Expert Opinions and Recommendations
Market analysts have expressed optimism about DAM Capital Advisors’ growth trajectory and its potential to deliver robust returns. Leading brokerage BP Equities has assigned a “Subscribe” rating, citing:
- Strong Market Position: The firm is a key player in India’s investment banking sector.
- Favorable Valuation: Despite a relatively high P/E ratio of 28.4x, analysts believe the company’s financial growth justifies the premium.
- Positive Industry Outlook: The expanding scope of merchant banking bodes well for future profitability.
Experts also emphasize DAM Capital’s proven ability to manage large transactions, further boosting investor confidence.
Should You Apply?
Given the strong subscription numbers, consistent GMP trends, and the company’s financial strength, investing in DAM Capital Advisors’ IPO could be a lucrative opportunity. The anticipated 57% listing gain, combined with the firm’s market leadership and growth prospects, makes this IPO an attractive option for both retail and institutional investors. However, prospective investors should weigh their risk tolerance and conduct further research before making a final decision.
Conclusion
With only hours left before the bidding closes, the DAM Capital Advisors IPO has emerged as a standout offering in 2024. Its robust subscription status, stellar financials, and positive market sentiment make it a compelling choice for investors aiming to capitalize on India’s growing capital markets.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor or conduct thorough research before making investment decisions.
