DAM Capital Advisors Secures Rs 251 Crore from Anchor Investors Ahead of Initial Public Offering

DAM Capital Advisors has secured Rs 251 crore from anchor investors ahead of its initial public offering (IPO) for public subscription. The IPO, priced between Rs 269 and Rs 283 per share, will be open from December 19 to December 23. This offering is an offer-for-sale (OFS) of 2.97 crore equity shares, valued at Rs 840.25 crore at the top price band.

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The anchor investors include Nomura, Goldman Sachs, HSBC, Societe Generale, Nippon India Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund, and Aditya Birla Sun Life Mutual Fund. According to a BSE circular, DAM Capital has allocated 88.86 lakh shares to 33 funds at Rs 283 each, totalling Rs 251.48 crore.

Investment Details and Market Capitalisation

The IPO does not involve any fresh issue of shares; all proceeds will go to the selling shareholders. Promoter Dharmesh Anil Mehta and investors like Multiples Alternate Asset Management, RBL Bank, Easyaccess Financial Services, and Narotam Satyanarayan Sekhsaria are selling their shares in this OFS.

At the upper price band, DAM Capital's market capitalisation is estimated at Rs 2,000 crore. The allocation of the issue is divided with half reserved for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.

Company Overview and Financial Solutions

DAM Capital Advisors offers a variety of financial services including investment banking in equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory. It also provides institutional equities services such as broking and research.

Under the leadership of Dharmesh Anil Mehta, DAM Capital holds a significant position in India's investment banking sector. It has a market share of 12.1% based on IPOs and qualified institutional placements managed as the book-running lead manager in FY24, according to a Crisil report.

Listing Plans and Merchant Banker

Nuvama Wealth Management is serving as the sole merchant banker for this issue. The company plans to list its equity shares on the BSE and NSE on December 27. The listing aims to provide benefits from being publicly traded while enabling shareholders to sell their stakes through the OFS.

The entire IPO process is designed to facilitate the sale of existing shares rather than raising new capital for DAM Capital Advisors. This strategic move aligns with the company's objectives outlined in its draft papers submitted earlier.