DAM Capital Advisors IPO Subscription Status, GMP : The IPO of DAM Capital Advisors Limited is getting better response from investors. This IPO has been subscribed more than 5 times or 500 percent by 2:15 pm on its second day. There is a huge craze in the gray market regarding this IPO. This IPO of the size of about Rs 840 crore is open from 19 December to 23 December 2024. Whereas the price band is Rs 269-283 per share. The minimum lot size with one application is 53 shares. There are full indications of success of this IPO from GMP and subscription.
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DAM Capital IPO: Subscription Status
DAM Capital’s IPO has so far been subscribed 5.22 times or 522 percent. In this, 50 percent share was reserved for QIB and so far it has been subscribed 2 percent. 15 percent share was reserved for NII and till now it has been filled 7.55 times. Whereas the reserve of 35 percent for retail investors is filled 7.16 times. The reserved portion for employees has received 10.61 times subscription so far.
DAM Capital GMP
There is a lot of craze in the gray market regarding the unlisted stock of DAM Capital. The unlisted stock of the company is at a premium of Rs 170. In terms of upper price band Rs 283, this premium is 60 percent. In this context, this share can be listed at Rs 453 as against the IPO price of Rs 283.
Brokerage advised to subscribe
Brokerage house Choice Broking has advised to subscribe for long term in DAM Capital’s IPO. The brokerage says DAM Capital is one of the leading merchant banks in India, whose business operations also extend into institutional equities. Most of its revenue comes from merchant banking, primarily through advisory fees, which constituted 54.1 percent of the company’s total revenue for the 6 months ending September 30, 2024. Additionally, 39.5% of its revenue comes from broking activities. In FY24, DAM Capital achieved 12.1% market share based on the number of IPOs and QIPs it managed as lead manager.
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At the higher price band, DAM Capital is seeking a P/E ratio of 28.4x based on its FY24 EPS of Rs 10, which is higher than the average of its peers. The Indian capital market witnessed stronger growth in FY24 compared to FY23, with the number of issues increasing from 234 in FY23 to 316 in FY24. This has also had a positive impact on the top and bottom line of the company.
Company’s key strengths
• Fastest growing merchant bank in India
• Strong execution with deep understanding of sectors and products
• Institutional equity platform with comprehensive research and execution capabilities
• Comprehensive coverage of corporates, financial sponsors and institutional investors
• Experienced management and professionals supported by a majority independent board
• Strong track record of revenue growth and profitability
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risk with the company
• General slowdown in global economic activity
• Past losses in the stock broking segment and any further reduction in brokerage charges could have a material impact on the business.
• Ineffective management of risk systems can have a negative impact on the business
• Overcoming challenges in attracting and retaining customers, investors and employees as well as timely transactions
• Working in a highly regulated environment
• intense competition
(Disclaimer: The view or advice on the share is given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
