Dam Capital Advisors IPO: GMP, subscription status, other key details. Apply or not?

DAM Capital Advisors IPO: The initial public offering (IPO) of Dam Capital Advisors Ltd opened for public subscription on December 19 and will close on December 23. During the first two days of the bidding process, the issue received decent demand and now only one day is left to apply for the DAM Capital Advisors IPO. DAM Capital Advisors IPO price band is set at ₹ 269 to ₹ 283 per share. The ₹ 840.25-crore worth DAM Capital Advisors IPO is entirely an offer for sale (OFS) of 2.97 crore shares. DAM Capital Advisors IPO GMP today, or grey market premium today, is also showing a positive trend for the stock led by strong demand. Let us check DAM Capital Advisors IPO subscription status, GMP, and should you apply. DAM Capital Advisors IPO GMP Today DAM Capital Advisors IPO GMP today is ₹ 161 per share, according to stock market observers. This shows that the shares of the company are available at a premium of ₹ 161 in the grey market today. On what this DAM Capital Advisors IPO GMP means, market observers said that DAM Capital Advisors shares are trading at ₹ 444 apiece in the grey market, a premium of 57% to the IPO price of ₹ 283.00 per share. After two days of bidding, DAM Capital Advisors IPO GMP signals that allottees may get around 57% return on their money. DAM Capital Advisors IPO Subscription Status DAM Capital Advisors IPO has been subscribed 6.98 times so far, as per NSE data till December 20, the second day of the bidding process. The retail portion has been subscribed 8.96 times, the Non Institutional Investors (NII) segment has been filled 11.49 times, and the Qualified Institutional Buyers (QIBs) portion is subscribed 7%. DAM Capital Advisors IPO Review Dam Capital Advisors Ltd is a rapidly growing merchant bank in India, with a revenue CAGR of 39% from FY22 to FY24 and the highest profit margin in FY24. “Based on the peer comparison Dam Capital, stands out among its peers with exceptional growth and profitability. It has achieved a superior ROE of 43.4%, higher than the peer average of 24.1%. Its EBITDA margin of 59.1% is above the peer average of 50.3%, reflecting operational efficiency. Its PE Multiple is at 28.4x slightly higher than its peers. Given its strong fundamentals and focus on high-margin investment banking we recommend subscribing to the issue,” said broking firm Nirmal Bang. According to KRChoksey Securities, DAM Capital Advisors commands a valuation of 28.4x P/E, which is reasonable in light of its stellar growth metrics in revenue, EBITDA, and PAT, boasting the highest CAGR in its sector. “By concentrating on high-margin merchant banking, the company distinguishes itself from competitors that predominantly engage in lower-margin businesses like retail broking, making it a compelling investment opportunity. DAM Capital's capacity to navigate changing market conditions, along with a robust pipeline of deals and a growing presence in the capital markets, positions it well to leverage the expanding opportunities within India's financial ecosystem. Given these factors, we assign a ‘SUBSCRIBE’ rating to the IPO,” said KRChoksey Securities. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.