As the DAM Capital Advisors Limited initial public offering (IPO) approaches its final day of bidding on December 23, 2024, investors are keen to understand the latest developments. This article provides comprehensive insights into the IPO’s grey market premium (GMP), financial performance, important dates, expert opinions, and whether you should apply.
IPO Overview
The DAM Capital Advisors IPO opened for subscription on December 19, 2024, and will close today. The price band for the IPO is set between ₹269 and ₹283 per share, with a total issue size of approximately ₹840.25 crore, consisting entirely of an offer for sale (OFS) of 2.97 crore shares.
Key Details:
- IPO Price Band: ₹269 – ₹283 per share
- Lot Size: 53 shares
- Minimum Investment: ₹14,999
Subscription Status
As of the latest updates, the DAM Capital Advisors IPO has garnered strong demand, being oversubscribed 6.98 times as of the second day of bidding. Here’s a breakdown of subscription figures:
- Retail Individual Investors (RIIs): Subscribed 8.96 times
- Non-Institutional Investors (NIIs): Subscribed 11.49 times
- Qualified Institutional Buyers (QIBs): Subscribed 7%
Grey Market Premium (GMP)
The grey market premium for the DAM Capital Advisors IPO is currently at ₹161 per share, indicating positive sentiment in the unlisted market. This suggests that shares are expected to list at around ₹444, reflecting a potential listing gain of approximately 57% over the upper price band.
| Date | GMP | Trend | Kostak Rate | Subject to |
|---|---|---|---|---|
| December 23 | ₹161 | – | ₹7,000 | – |
| December 22 | ₹170 | – | ₹6,000 | – |
| December 21 | ₹160 | – | ₹3,000 | – |
| December 20 | ₹135 | – | – | – |
Company Financials
DAM Capital Advisors has shown impressive growth metrics:
- The company is recognized as the fastest-growing merchant bank in India by revenue CAGR from FY22 to FY24.
- As of FY24, approximately 67% of its revenue comes from merchant banking activities.
- The firm has successfully executed 72 ECM transactions since its acquisition in November 2019, including 27 IPOs.
Recent Performance:
- Revenue increased by 114% year-over-year as of March 31, 2024.
- Profit after tax (PAT) surged by an astounding 713%, showcasing strong financial health and operational efficiency.
Important Dates
Here are the key dates associated with the DAM Capital Advisors IPO:
| Event | Date |
|---|---|
| IPO Open Date | December 19, 2024 |
| IPO Close Date | December 23, 2024 |
| Basis of Allotment | December 24, 2024 |
| Refunds | December 26, 2024 |
| Credit to Demat Account | December 26, 2024 |
| IPO Listing Date | December 27, 2024 |
Should You Apply?
Given the robust subscription numbers and positive GMP trends, many analysts recommend considering an investment in this IPO. BP Equities has assigned a “Subscribe” rating based on several factors:
- The company’s strong market position and growth potential in the merchant banking sector.
- A favorable industry outlook as DAM Capital continues to expand its market share.
Despite its relatively high price-to-earnings (P/E) ratio of 28.4x, analysts believe that the company’s improving financials justify this valuation.
Expert Opinions
Market experts have expressed optimism regarding the DAM Capital Advisors IPO:
- The firm’s significant growth in revenue and profitability positions it well for future success.
- Analysts highlight that DAM Capital’s reputation as a leading player in investment banking enhances its attractiveness to investors.
Conclusion
With only hours left before the DAM Capital Advisors IPO closes, prospective investors should assess their options carefully based on subscription status and GMP trends. Given the strong demand and positive market sentiment, this IPO could present a compelling investment opportunity for those looking to enter the capital markets.
Disclaimer
This article is intended for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with financial advisors before making investment decisions related to IPOs or any other financial instruments.
