DAM Capital Lists at 39% Premium, Falls Below GMP Estimates: Should You Buy, Sell or Hold?

DAM Capital Advisors made a solid stock market debut, with shares getting listed at Rs 393 per share, a 38.87 per cent premium to its issue price of Rs 283 per share on the NSE. On the BSE, the stock was listed at Rs 392.90 per share, a 38.83 per cent premium to its issue price.

The public issue opened for public subscription on December 19 to raise around Rs 840 crore in the primary market. The issue was available in the price band of Rs 269-283 per share with a lot size of 53 shares. It was open for subscription from December 19 to December 23, 2024.

However, the listing was below grey market premium (GMP) estimates as the shares were trading in the unlisted markets ahead of the debut at a premium of over 50 per cent.

The IPO of DAM Capital Advisors received a solid response from investors, with a subscription of 81.88 times. According to NSE data, Qualified Institutional Buyers (QIBs) placed the highest bids, oversubscribing their reserved quota by 166.33 times, followed by Non-Institutional Investors (NIIs) at 98.62 times and Retail Individual Investors (RIIs) at 27.13 times.

Investment banker Dharmesh Mehta-led DAM Capital Advisors raised Rs 251.48 crore through anchor book on December 18, a day before the IPO opening. Major global investors including Nomura, Goldman Sachs, HSBC Global, Carmignac Portfolio, Neuberger Berman Investment Funds and Societe Generale participated in the DAM’s anchor book.

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

As per the red herring prospectus, the company will not receive any proceeds from the OFS by the selling shareholders. The selling shareholders will receive their respective portions of the proceeds after deducting their share of offer-related expenses and applicable taxes.

Should you sell or hold?

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd says those who took part in the IPO may book part profit and choose to hold onto their shares while keeping a careful eye on the company’s performance and the state of the market, as well as maintaining a stop loss at 390.

Abhishek Pandya, Research Analyst at Stoxbox, recommended that investors who have been allotted shares consider holding their positions from a medium to long-term perspective, given the company’s strong market presence, improved financial performance and industry tailwinds.

About the company

DAM Capital Advisors Limited is an investment bank in India. The company offers a wide range of financial solutions in the areas of Investment banking comprising equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory. It achieved a market share of 12.1 per cent in FY24.