DAM Capital Advisors made a strong entry into the stock market today, December 27, 2024, with its shares listing at a robust premium. The investment bank’s shares opened at ₹393 on the National Stock Exchange (NSE) and ₹392.90 on the Bombay Stock Exchange (BSE), reflecting a significant 39% increase over the issue price of ₹283 per share.
IPO Overview
The DAM Capital Advisors IPO, which closed on December 23, raised ₹840 crore through an entirely offer-for-sale by existing shareholders. The IPO was highly anticipated, receiving an overwhelming response from investors and being oversubscribed 81.88 times overall. Qualified institutional buyers showed particular interest, subscribing 166.33 times, while non-institutional and retail investors subscribed 98.47 times and 12.45 times, respectively.
Share Price Performance
Upon listing, DAM Capital shares debuted at ₹393 on the NSE and ₹392.90 on the BSE, marking a premium of approximately 39% over the issue price. Although this listing was robust, it fell short of grey market expectations, where shares were trading at around ₹426 prior to the listing, indicating a potential opening of over 50%.
Market Reaction and GMP
The strong debut reflects positive investor sentiment towards DAM Capital Advisors, driven by reasonable valuations and strong demand during the IPO phase. Analysts noted that while the initial listing was below grey market forecasts, the solid performance indicates confidence in the company’s growth potential and market position.
Financial Utilization of IPO Proceeds
Since the DAM Capital Advisors IPO was entirely an offer-for-sale (OFS), all proceeds from the share sales will go to the selling shareholders rather than to the company itself. This structure means that no funds will be utilized for business expansion or operational needs directly from this IPO.
Growth Trajectory and Outlook
Analysts suggest booking partial profits on listing gains while retaining some shares for the long term, given DAM Capital’s strong market presence and growth potential. The company has demonstrated consistent financial growth, with a total income CAGR of 38.8% between FY22 and FY24 and EBITDA rising at a 73.4% CAGR during the same period.
Key Considerations for Investors
With its strong listing, DAM Capital has reinforced its market position as a leading investment bank. While the stock’s trajectory will depend on broader market sentiment and performance, analysts remain optimistic about its long-term growth potential. Investors are advised to track the company’s performance closely and make decisions aligned with their investment goals.
Disclaimer: The views and investment tips expressed by experts are their own and not those of this publication. Users are advised to consult certified experts before making any investment decisions.
