DAM Capital Advisors IPO: 50% listing gain on cards? What should investors do

The unlisted shares of DAM Capital Advisors maintain a robust premium in grey markets, suggesting favorable sentiment ahead of listing. The company’s shares are currently trading at a premium of ₹150, reflecting a 53% gain over the IPO issue price of ₹283.

DAM Capital Advisors’ shares are expected to list on the BSE and NSE on Friday, December 27, 2024.

Considering market sentiments and other relevant factors, the company is expected to list with a healthy gain exceeding 50% over its issue price, according to Prashanth Tapse of Mehta Equities.

Tapse recommended that conservative investors who were allotted shares consider booking profits above the expected levels. “Long-term investors should evaluate the post-listing trends and hold the shares for the long term, despite potential short-term volatility and market risks. For non-allotted investors, we advise accumulating shares during dips post-listing, which may occur due to profit-booking attempts,” he said.

Despite the offer being entirely an OFS (Offer for Sale), DAM Capital Advisors received a very strong response from investors, with an overall subscription of 81.88x at the close of the offering. Tapse believes the demand was driven by reasonable valuations, which present significant listing gains for new investors.

Given the company’s strong market presence, improved financial performance, and favorable industry conditions, Abhishek Pandya of StoxBox recommends that investors who have been allotted shares consider holding their positions from a medium- to long-term perspective.

The IPO, which kicked off for subscription on December 19, closed for public bidding on December 23. The company had fixed a price band of ₹269-283 per share for its public issue.

The IPO included entirely an offer-for-sale of 2.96 crore equity shares by promoter and investors. Since the IPO is entirely an OFS, the proceeds from the offer will go to the selling shareholders.

Investment banker Dharmesh Mehta-led DAM Capital Advisors has raised ₹251.48 crore via anchor book on December 18, a day before the IPO opening.

Marquee global investors such as Nomura, Goldman Sachs, HSBC Global, Carmignac Portfolio, Neuberger Berman Investment Funds, and Societe Generale participated in the DAM’s anchor book.

DAM Capital Advisors Ltd is touted to be the fastest growing merchant bank in India. The company offers a wide range of financial solutions in the areas of:- (i) Investment banking comprising equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory; and (ii) Institutional equities comprising broking and research.

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