Upcoming IPO: DAM Capital Advisors To Open For Subscription Soon, Price Band To Be Fixed Tomorrow

DAM Capital Advisors, under the leadership of seasoned investment banker Dharmesh Mehta, is gearing up for its Initial Public Offering (IPO), scheduled to open for public subscription on December 19. This IPO represents India's first public issue by a pure-play boutique investment bank.

IPO Structure

The IPO is a pure Offer for Sale (OFS), consisting of 2.96 crore equity shares. Unlike many IPOs, there is no fresh issue component, underscoring the company's focus on providing an exit route for existing investors rather than raising fresh capital. Prominent stakeholders, including promoter Dharmesh Anil Mehta, his wife, and their firm Boombucket Advisors, as well as institutional investors such as Multiples Alternate Asset Management, Narotam Satyanarayan Sekhsaria, RBL Bank, and Easyaccess Financial Services, will participate as selling shareholders.

The shareholding structure of DAM Capital Advisors is currently split, with promoters holding 45.88% and the remaining 54.12% owned by the aforementioned institutional investors. This divestment through the IPO aims to diversify the company's ownership base while providing liquidity for existing shareholders.

The price band for the IPO will be disclosed on December 16, three days prior to the opening of the subscription window. Additionally, the anchor book, which can comprise up to 60% of the portion reserved for Qualified Institutional Buyers (QIBs), will be available for bidding on December 18.

Investor Allocation

DAM Capital Advisors has strategically reserved portions of the IPO for different investor categories:
50% for Qualified Institutional Buyers (QIBs)
15% for Non-Institutional Investors (NIIs)
35% for Retail Investors
The subscription window for the public will remain open from December 19 to December 23, with the allotment of shares expected to follow shortly thereafter.

About DAm Capital Advisors

Since November 2019, DAM Capital Advisors has established itself as a formidable player in India's equity capital markets. The company boasts a strong portfolio, having completed 72 equity capital market transactions, including IPOs and Qualified Institutional Placements (QIPs). It has also closed 23 advisory transactions.

With a 12.1% market share, based on the number of equity transactions launched, DAM Capital Advisors competes directly with leading investment banks such as ICICI Securities, IIFL Capital Services, JM Financial, and Motilal Oswal Financial Services.

Financial Performance

DAM Capital's financial performance highlights its growth trajectory and operational efficiency. In FY24, the company reported an 8-fold increase in net profit, reaching Rs 70.5 crore compared to Rs 8.6 crore in FY23. Revenue also surged by 112%, climbing from Rs 84.9 crore in FY23 to Rs 180 crore in FY24. This upward trend continued in the first half of FY25, with a profit of Rs 43.8 crore and revenue of Rs 107.8 crore.

IPO Management

Nuvama Wealth Management has been appointed as the sole Book Running Lead Manager for the IPO, while Link Intime India will serve as the registrar. Their involvement is expected to ensure a smooth execution of the public offering process.