Investment banking firm DAM Capital made a strong stock-exchange debut on Friday with its shares listing at a 39% premium to its initial public offering price and then climbing further.
Shares of DAM Capital listed at Rs 392.90 apiece on the BSE, up from the issue price of Rs 283, stock-exchange data showed. The shares touched a high of Rs 456.90 apiece, before paring the gains.
The strong debut comes after the company’s IPO saw heavy demand from investors. The IPO was covered about 82 times, with institutional investors bidding for 166 times their quota and non-institutional investors bidding for 98.6 times the shares reserved for them.
DAM Capital didn't issue any new shares in the IPO, which only comprised an offer for sale of 29.69 million shares. The selling shareholders raised Rs 840 crore.
Renuka Ramnath-led Multiples PE and the Narotam Sekhsaria Family Office partially exited the financial services company, reaping strong returns from their investments.
The PE firm and the family office sold 8.71 million shares and 7.04 million shares, respectively. The two investors had previously planned to sell 8.8 million and 7.07 million shares when the company filed draft documents for the issue.
Apart from Multiples PE and the family office, other selling shareholders included RBL Bank, Easyaccess Financial Services and DAM Capital promoter Dharmesh Anil Mehta.
DAM Capital was created when Mehta, an Axis Capital veteran, acquired IDFC Securities with the backing of Multiples PE and Narotam Sekhsaria's family office four years ago. The PE firm had then shelled out around Rs 20 crore while Sekhsaria had chipped in with Rs 15 crore as part of a Rs 86 crore deal.
DAM Capital provides investment banking services in equity capital markets, mergers and acquisitions, private equity, and structured finance advisory, as well as institutional equities comprising broking and research. It had a market share of 12.1% based on the number of IPOs and institutional share shares in FY24, says the company.
The company intends to launch an alternative investment fund, portfolio management services and a broking business going ahead, Mehta had told reporters on the sidelines of the firm’s IPO launch.
The investment bank claims to be the fastest growing in terms of revenue CAGR from FY22 to FY24 and had the highest profit margin in FY24 compared to peers. Some of the IPOs that it has managed include that of Entero Healthcare and JSW Infrastructure, as well as the acquisition of Glenmark Lifesciences by Nirma.
