DAM Capital Advisors, a leading investment bank in India, is making waves with its initial public offering (IPO). The IPO offers a total issue size of ₹840.25 Crores, consisting entirely of an Offer for Sale (OFS) of 2.97 Crore shares. As an investment bank with high revenue growth, DAM Capital is set to offer its shares in a price band of ₹269 to ₹283 per equity share. This article delves into all the important aspects of the IPO, from subscription details to grey market premium and allotment status, helping you make an informed decision before applying.

IPO Subscription Details

The DAM Capital Advisors IPO opened for subscription on December 19, 2024, and will close on December 23, 2024. According to the latest updates, as of December 20, 2024, the IPO was subscribed 6.98 times on the second day of the subscription period. This high demand indicates strong investor interest and could suggest potential gains upon listing.

The lot size of the IPO is 53 shares, which means retail investors need to invest a minimum of ₹14,999, while High Net-Worth Individuals (HNIs) must invest in 14 lots (742 shares), amounting to ₹2,09,986. The market capitalization of the company at the upper price band of ₹283 per share will be approximately ₹2,000.41 Crores, indicating its significant position in the Indian investment banking sector.

Grey Market Premium (GMP) and Potential Listing Gains

One of the key aspects that investors closely follow is the Grey Market Premium (GMP), which reflects the unlisted demand for the IPO shares. As of December 18, 2024, the GMP of the DAM Capital Advisors IPO is ₹80, which is a substantial 28.27% premium over the issue price. This suggests potential listing gains, which investors should keep in mind while deciding whether to apply.

However, it is important to note that trading based on the grey market premium is not a reliable indicator of the listing price. The grey market operates in an unregulated manner, and its prices can be volatile. Hence, it is recommended for investors to wait for the official listing rather than rely on the grey market for price discovery.

DAM Capital Advisors IPO Allotment Process

The allotment date for the DAM Capital Advisors IPO is expected to be December 24, 2024. Investors can check their allotment status on the Registrar's website by entering their application number, PAN, or DP Client ID. This step will help investors determine whether they have been allotted shares from the IPO.

If you have applied for the DAM Capital Advisors IPO, here are the simple steps to check your allotment status:

• Visit the IPO allotment status page on the registrar’s website.
• Select DAM Capital Advisors Limited IPO from the dropdown.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to view your allotment status.

Key Financial Highlights of DAM Capital Advisors

DAM Capital Advisors has shown remarkable financial growth in recent years. For the period ending September 30, 2024, the company's revenue stood at ₹1,077.52 million, while its profit after tax (PAT) was ₹437.80 million. This financial performance, combined with a high ROE of 58.72% for FY24, suggests that the company is well-positioned for future growth.

DAM Capital's P/E ratio of 28.36x (pre-issue) and 28.37x (post-issue) is slightly higher than the industry average of 24x, indicating that the IPO is fairly priced. Investors looking for strong IPO performance can consider this offer, given the company’s excellent financial metrics and market positioning.

Objective of the DAM Capital Advisors IPO

DAM Capital Advisors will not receive any proceeds from the Offer for Sale portion of the IPO. Instead, the selling shareholders will receive the proceeds after deducting their portion of the expenses. However, the company aims to further solidify its position in the market, expand its capabilities, and continue growing its investment banking services in India.

Should You Apply for DAM Capital Advisors IPO?

The DAM Capital Advisors IPO is a promising opportunity for investors looking to capitalize on the growing investment banking sector in India. The company’s strong market share, impressive financial growth, and high Grey Market Premium (GMP) suggest a potential for listing gains. However, it’s crucial to remember that investing in IPOs carries risks, and the performance of the stock can be volatile post-listing.

We recommend that risky investors apply to the IPO, considering its strong financials and growth prospects. The company’s market share of 12.1% in IPOs and qualified institutional placements (QIPs) is another strong indicator of its potential in the sector.

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