DAM Capital Advisors IPO: Public Issue Subscribed 22x On Final Day, GMP Hints Stellar Listing; Check Dates

The Rs 840.25 crore initial public offering (IPO) of DAM Capital Advisors Ltd is closing its third and final day of bidding on December 23, with strong demand evident across investor categories. The issue, which opened for subscription on December 19, has drawn attention, as reflected in its oversubscription and buoyant grey market premium (GMP).

Subscription Status

By 1:15 pm on the final day, the IPO had been oversubscribed 22.26 times, receiving bids for 46.30 crore shares against the 2.08 crore shares available, according to BSE data. Retail investors subscribed 16.86 times, Non-Institutional Investors (NIIs) subscribed 47.03 times, and Qualified Institutional Buyers (QIBs) subscribed 13.09 times.

Grey Market Premium (GMP)

Market observers reported that the DAM Capital Advisors IPO GMP is currently Rs 161 per share, signalling that the stock is trading at Rs 444 apiece in the grey market. This represents a 57% premium over the upper IPO price band of Rs 283.

IPO Details

The DAM Capital Advisors IPO is an Offer for Sale (OFS), comprising 2.97 crore shares entirely offloaded by the promoter and other shareholders. The price band is set at Rs 269 to Rs 283 per share, valuing the company at approximately Rs 2,000 crore at the upper price band.

Prominent sellers in the OFS include Promoter Dharmesh Anil Mehta, investors Multiples Alternate Asset Management, RBL Bank, Easyaccess Financial Services, and Narotam Satyanarayan Sekhsaria.

Unlike some IPOs, this issue involves no fresh issuance of shares, meaning the proceeds will not go to the company but rather to the selling shareholders.

Investor Allocation

The IPO allocation is structured to attract a diverse pool of investors:
50% reserved for QIBs, ensuring substantial participation from institutional entities.
35% allocated to retail investors, making it attractive for individual participants.
15% reserved for NIIs, capturing high-net-worth and corporate interest.

Anchor Investment

Ahead of the IPO launch, DAM Capital Advisors raised Rs 251 crore from anchor investors. Key anchor investors include Nomura, Goldman Sachs, HSBC, Societe Generale, Nippon India MF, HDFC MF, Kotak MF, and Aditya Birla Sun Life MF.

About DAM Capital Advisors

Founded in 1993 as SS Kantilal Ishwarlal Sharebrokers and Investors, the company has undergone significant transformations over the years. In 1994, the company was rebranded as SS Kantilal Ishwarlal Securities Private Limited (SSKIPL). In 2006-2008, the company was acquired by the IDFC Group. In 2019, following IDFC's exit, Dharmesh Anil Mehta and other investors took over. In 2020, the company was renamed as DAM Capital Advisors Limited.

Today, DAM Capital Advisors is an investment banking and advisory firm. According to a Crisil report, the company held a 12.1% market share in FY24, based on the number of IPOs and qualified institutional placements managed as a book-running lead manager.