IPOs in 2024: DAM Capital Advisors files papers with Sebi; check details

It's raining initial public offerings (IPOs) on Dalal Street, and the latest company that has filed papers with the market regulator SEBI is investment bank DAM Capital Advisors.

The company's IPO is solely an offer-for-sale (OFS) of 3.2 crore equity shares, with no fresh issue component, according to the draft red herring prospectus (DRHP) filed on Tuesday.

Those selling shares in the OFS are promoter Dharmesh Anil Mehta, investors Multiples Alternate Asset Management, RBL Bank, Easyaccess Financial Services, and Narotam Satyanarayan Sekhsaria.

Since the entire issue is an OFS, all the proceeds from the IPO will go directly to the selling shareholder rather than to the company.

DAM Capital Advisors provides a wide range of financial solutions in areas of investment banking comprising equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory; and institutional equities comprising broking and research.

Headed by Mehta, DAM Capital Advisors' revenue has grown at a CAGR of 38.77% from fiscals 2022 to 2024. It is one of the leading investment banks in India with a market share of 12.1% based on the number of IPOs and qualified institutional placements undertaken by it as the bookrunning lead manager in fiscal 2024, according to a CRISIL report.

Nuvama Wealth Management is the sole merchant banker for the issue.

As per a recent report by SEBI, titled "Analysis of Investor Behavior in Initial Public Offerings (IPOs)," the capital market regulator notes that FY22 marked a historic year for the public equity issuances, where fund mobilisation through Main Board Initial Public Offerings (IPOs) reached  new highs, along with the listing of many new generation growth-oriented tech companies. In FY22 alone, a  record amount of more than ₹1,10,000 crore was raised through 50 IPOs.

The activity in the IPO market remained buoyant during FY22 to FY24, on the back of stronger retail participation as reflected by the number of applications and oversubscriptions. The success of the IPOs was partly supported by overall positive market sentiments and was further boosted by strong post-listing performance in some of the IPOs, the study added. 

Of the 144 IPOs listed during April 2021-December 2023, 75% (108 in number) delivered positive returns. As many as 26 IPOs delivered more than 50% listing day returns. "Although there were some laggards post-listing, it did not deter enthusiasm for new IPOs. As many as 92 IPOs were oversubscribed more than 10 times, and only 2 IPOs were undersubscribed," the study revealed.