DAM Capital Advisors IPO Day 1: GMP, price band, other key details. Should you apply as issue opens today? | Stock Market News

DAM Capital Advisors IPO: The initial public offering (IPO) of investment bank DAM Capital Advisors Ltd opens for subscription today, December 19. The ₹840.25-crore worth DAM Capital Advisors IPO will remain open till December 23.

DAM Capital Advisors IPO price band is set at ₹269 to ₹283 per share. The book-built issue is entirely an offer-for-sale (OFS) of 2.97 crore equity shares. The company will not receive any proceeds from the initial share sale.

The equity shares of the company will be listed on BSE and NSE with a tentative listing date fixed as December 27.

Nuvama Wealth Management is the book running lead manager of the DAM Capital Advisors IPO, while Link Intime India Private Ltd is the IPO registrar.

As the public issue opens today, the equity shares of the company are showing decent trend in the unlisted market with a strong grey market premium (GMP). Here’s a look at the DAM Capital Advisors IPO GMP today.

DAM Capital Advisors IPO GMP Today

The trend for DAM Capital Advisors shares in the grey market is bullish. According to stock market observers, DAM Capital Advisors IPO GMP today is ₹135 per share. This indicates that in the grey market, DAM Capital Advisors shares are trading higher by ₹135 apiece than their issue price.

This shows DAM Capital Advisors shares are trading at ₹418 apiece in the grey market, a premium of 47.7% to the IPO price of ₹283.00 per share.

Should you apply for DAM Capital Advisors IPO?

DAM Capital is one of the leading merchant banks in India, with business operations also spanning institutional equities. The majority of its revenue comes from Merchant Banking, primarily through advisory fees, which accounted for 54.1% of the company’s total revenue for the six months ending September 30, 2024. Additionally, 39.5% of its revenue comes from broking activities. In FY24, DAM Capital held a 12.1% market share based on the number of IPOs and QIPs it managed as a lead manager.

Many analysts have recommended subscribing to the DAM Capital Advisors IPO for the long term given its growth prospects.

“At the higher price band, DAM Capital is seeking a P/E ratio of 28.4x based on its FY24 EPS of ₹10, which is higher than the average of its peers. The Indian capital market has experienced strong growth in FY24 compared to FY23, with the number of issues rising from 234 in FY23 to 316 in FY24. This has also positively reflected in the company’s top and bottom line. Looking ahead, the favorable outlook for capital markets, increased investor participation, and India’s status as one of the fastest-growing economies are expected to benefit the company in the long run. However, the high valuation being demanded raises concerns. Thus, we recommend an ‘Subscribe for Long Term’ rating for this issue,” said Choice Broking.

Bajaj Broking noted that DAM Capital Advisors has a promising outlook, driven by its strong market position, diverse client base, and robust financial performance.

“The company’s IPO is set at a price band of ₹269-283 per share, with an issue size of up to 2.97 crore shares. This would value the company at approximately ₹2,000 crore at the upper end of the price band. The strong financial performance, with a total income of ₹182 crore in FY24 and a net profit of ₹70.52 crore, reflects the company’s solid valuation and growth potential,” Bajaj Broking said, while rating “Subscribe for Long Term” to this issue.

Anand Rathi believes that the company is well-placed to leverage the growing capital market opportunities in India.

“As part of its growth strategy, the company plans to enter additional fee-based businesses to capitalize on emerging market trends. Additionally, a strategic partnership with a global merchant bank will strengthen its ability to handle cross-border transactions and broaden its international presence. Hence considering all parameters, we recommend the issue can be considered as “Subscribe for long term”.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.