DAM Capital Advisors Gets Sebi's Go Ahead To Launch IPO

Investment bank DAM Capital Advisors has received Sebi's go ahead to float an initial public offering (IPO), an update with the markets regulator showed on Tuesday. The proposed IPO is solely an offer-for-sale (OFS) of 3.2 crore equity shares, with no fresh issue component, according to the draft red herring prospectus (DRHP). Those selling shares in the OFS are promoter Dharmesh Anil Mehta, investors Multiples Alternate Asset Management, RBL Bank, Easyaccess Financial Services and Narotam Satyanarayan Sekhsaria.

Since the entire issue is an OFS, all the proceeds from the IPO will go directly to the selling shareholder, rather than the company. DAM Capital Advisors, which filed preliminary papers with Sebi in September, obtained the regulator's observations on December 4, the update showed. In Sebi's parlance, obtaining the observations means its go ahead to launch the public issue. In its draft papers, the company stated that it plans to go public in a bid to achieve the benefit of listing equity shares on the stock exchanges and allow selling shareholders to sell their shares through the OFS.

DAM Capital Advisors provides a wide range of financial solutions in areas of investment banking comprising equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory; and institutional equities comprising broking and research. Headed by Mehta, DAM Capital Advisors is the fastest-growing investment bank in India by revenue CAGR (compound annual growth rate) of 38.77 per cent from fiscal 2022 to 2024.

It is one of the leading investment banks in India with a market share of 12.1 per cent based on the number of IPOs and qualified institutional placements undertaken by it as the book-running lead manager in fiscal 2024, according to a CRISIL report. Nuvama Wealth Management is the sole merchant banker for the issue. On the other hand, Sebi returned the draft IPO documents of M&B Engineering on December 5. The draft documents were filed in September, the update showed.