Thu Dec 19 14:39:18 UTC 2024: **DAM Capital Advisors IPO Oversubscribed on Day One**

MUMBAI, INDIA – DAM Capital Advisors, a leading Indian investment bank, saw its initial public offering (IPO) oversubscribed 2.75 times on its first day of trading, December 19th, 2024. The IPO, entirely an offer-for-sale (OFS) of 29.7 million shares valued at ₹840.25 crore, saw strong demand from retail and non-institutional investors (NIIs), with both quotas fully subscribed by the day’s close. The Qualified Institutional Buyer (QIB) portion was significantly undersubscribed, however.

The strong retail and NII interest contrasts with the QIB portion, which was subscribed only 0.01 times. The employee portion saw an impressive 6.19 times subscription rate. Anchor investors, including prominent names like Nomura, Goldman Sachs, and several major mutual funds, had already committed ₹251 crore a day earlier.

The IPO, priced at ₹269-283 per share, values the company at up to ₹2,000 crore at the upper end of the price band. While the company itself receives no proceeds from the OFS, promoter Dharmesh Anil Mehta and other investors, including Multiples Alternate Asset Management and RBL Bank, are selling their shares.

DAM Capital Advisors boasts a 12.1% market share in India’s investment banking sector based on Fiscal Year 2024 IPO and Qualified Institutional Placement (QIP) lead management. The company’s strong financial performance, with a 38.77% CAGR in total income and 79.46% CAGR in profit after tax between FY22 and FY24, contributed to investor confidence. However, analysts advise caution due to the 100% OFS nature of the offering and suggest subscription be considered only from a listing gains perspective. The IPO closes on December 23rd. The grey market premium suggests a potential listing price significantly higher than the IPO price.

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