DAM Capital Advisors Prepares for Historic IPO: India First Pure-Play Boutique Investment Bank Goes Public
DAM Capital Advisors, led by seasoned investment banker Dharmesh Mehta, is set to open its Initial Public Offering (IPO) for public subscription on December 19, 2024. This marks a significant milestone in India’s financial market, as the IPO will be the first-ever public issue by a pure-play boutique investment bank.
IPO Structure: An Offer for Sale (OFS)
The upcoming IPO will be an Offer for Sale (OFS), consisting of 2.96 crore equity shares. Unlike many IPOs that involve raising fresh capital, this offer focuses solely on providing an exit route for existing investors. Major stakeholders participating as selling shareholders include promoter Dharmesh Anil Mehta, his wife, their firm Boombucket Advisors, and institutional investors such as Multiples Alternate Asset Management, Narotam Satyanarayan Sekhsaria, RBL Bank, and Easyaccess Financial Services.
Investor Allocation and Subscription Details
The IPO will be open for subscription from December 19 to December 23, 2024. The company has earmarked portions of the offer for various investor categories:
- 50% for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 35% for Retail Investors
The price band for the IPO will be announced on December 16, three days before the subscription window opens. The anchor book, which could comprise up to 60% of the portion reserved for QIBs, will be available for bidding starting December 18, 2024.
About DAM Capital Advisors
Founded in November 2019, DAM Capital Advisors has quickly made a name for itself in India’s equity capital markets. The company has successfully executed 72 equity capital market transactions, including IPOs and Qualified Institutional Placements (QIPs), and has handled 23 advisory transactions. With a market share of 12.1%, DAM Capital competes with some of the country’s leading investment banks, including ICICI Securities, IIFL Capital Services, JM Financial, and Motilal Oswal Financial Services.
Strong Financial Performance
DAM Capital Advisors has demonstrated impressive financial growth. In FY24, the company reported an 8-fold increase in net profit, reaching Rs 70.5 crore compared to Rs 8.6 crore in FY23. Revenue also surged by 112%, rising from Rs 84.9 crore in FY23 to Rs 180 crore in FY24. The positive trend continued in the first half of FY25, with a profit of Rs 43.8 crore and revenue of Rs 107.8 crore.
IPO Management and Execution
The IPO will be managed by Nuvama Wealth Management as the sole Book Running Lead Manager, while Link Intime India will serve as the registrar. Their involvement ensures a seamless execution of the public offering process.
With this IPO, DAM Capital Advisors is set to further cement its position in India’s rapidly growing financial market, offering investors a unique opportunity to participate in the country’s first public issue by a boutique investment bank.
