DAM Capital Advisors submits draft papers for IPO fundraising

DAM Capital Advisors has filed draft papers with SEBI on September 3 to launch an initial public offering (IPO) to raise funds. The IPO will consist solely of an offer-for-sale (OFS) of 3.2 crore equity shares, with no new shares being issued. The OFS will see shares sold by four investors—Multiples Alternate Asset Management, Narotam Satyanarayan Sekhsaria, RBL Bank, and Easyaccess Financial Services—as well as by the promoter, Dharmesh Anil Mehta.

The first report on this development came from Moneycontrol, revealing that DAM Capital Advisors, led by veteran dealmaker Dharmesh Mehta, would be filing draft papers with SEBI for its IPO. DAM Capital has a track record of managing IPOs for 26 companies.

The breakdown of shares being sold in the OFS includes 88 lakh shares by Multiples Alternate Asset Management, 70.68 lakh shares by Narotam Satyanarayan Sekhsaria, 51.23 lakh shares by Easyaccess Financial Services, and the entire 68.31 lakh shares held by RBL Bank. Promoter Dharmesh Anil Mehta will also sell 42.41 lakh shares. Mehta, his wife, and their firm, Boombucket Advisors, currently own 45.88% of the company, while the remaining 54.12% is held by the aforementioned four investors. Since the IPO is entirely an offer-for-sale, all proceeds will go to the selling shareholders, with the company itself not receiving any funds.

DAM Capital claims to be one of India's leading investment banks, boasting a market share of 12.1% in fiscal 2024 based on the number of IPOs and qualified institutional placements (QIPs) it managed as a book-running lead manager. The firm provides a range of investment banking services, including equity capital markets, mergers and acquisitions, private equity, structured finance advisory, and institutional equities (broking and research).

Under the leadership of Dharmesh Mehta, DAM Capital has handled 67 equity capital market transactions, including 26 IPOs, 15 QIPs, five offers-for-sale, and one REIT IPO by July 2024. The firm has also worked on 20 advisory transactions covering M&A, private equity, and structured finance.

From FY22 to FY24, DAM Capital's total income grew at a compound annual growth rate (CAGR) of 38.77%, reaching Rs 182 crore, while profits surged at a CAGR of 79.46% to Rs 70.5 crore. Nuvama Wealth Management is serving as the merchant banker for the issue, and Link Intime India is acting as the registrar.

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