Upcoming IPO: DAM Capital Advisors gets SEBI's approval to launch public offer

DAM Capital Advisors IPO: Market regulator Securities and Exchange Board of India (SEBI) has approved the initial public offering (IPO) of investment bank DAM Capital Advisors, which is led by veteran banker Dharmesh Mehta.

The proposed initial share sale is entirely an offer-for-sale of 3.2 crore shares. There is no fresh issue component. Hence, the IPO proceeds will go to the selling shareholders.

Under OFS, those offloading their stake include promoter Dharmesh Anil Mehta and investors Easyaccess Financial Services, RBL Bank, Multiples Alternate Asset Management and Narotam Satyanarayan Sekhsaria.

An update on the regulator's website showed that DAM Capital Advisors received SEBI's observations on December 4. In SEBI's terminology, getting an observation means getting approval to launch the offer.

According to the draft red herring prospectus (DRHP), the company plans an IPO to take advantage of the benefits of listing shares on bourses and let selling shareholders divest their stakes through the OFS.

DAM Capital Advisors IPO: About the company

DAM Capital Advisors offers a variety of financial solutions, including investment banking comprising equity capital markets (ECM), private equity (PE), structured finance advisory and mergers and acquisitions (M&A), and institutional equities consisting of broking and research.

The company is India's fastest-growing investment bank by revenue compound annual growth rate (CAGR) of 38.77% from fiscal 2022 to 2024.

DAM Capital was founded by Dharmesh Mehta in 2019. He previously served as the managing director and chief executive officer of Axis Capital and has over thirty years of experience in the capital markets.

According to a CRISIL report, it is among the country's leading investment banks, with a market share of 12.1% based on initial public offerings and qualified institutional placements (QIPs) undertaken by it as the lead book-running manager in the financial year 2023-24.

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