DAM Capital IPO: Rs 251 Crore Raised from Anchor Investors

Investment bank DAM Capital Advisors on Wednesday said it has raised Rs 251 crore from anchor investors, a day before opening of its initial share-sale for public subscription.

Nomura, Goldman Sachs, HSBC, Societe Generale, Nippon India Mutual Fund (MF), HDFC MF, Kotak MF, and Aditya Birla Sun Life MF are among the anchor investors, according to a circular uploaded on the BSE website.

As per the circular, DAM Capital has allotted 88.86 lakh shares to 33 funds at Rs 283 apiece, which is also the upper end of the price band. This aggregates the transaction size to Rs 251.48 crore. 

The initial share-sale, with a price band of Rs 269-283 per share, will open for public subscription on December 19 and conclude on December 23.

The IPO is solely an offer-for-sale (OFS) of 2.97 crore equity shares worth Rs 840.25 crore, by a promoter and investors at the upper end of the price band, with no fresh issue component. 

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. 

In its draft papers, the company stated it plans to go public to achieve the benefit of listing equity shares on the stock exchanges and allow selling shareholders to sell their shares through the OFS. 

At the upper end of the price band, the company's market capitalisation has been pegged at Rs 2,000 crore.

Half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

DAM Capital Advisors provides a wide range of financial solutions in areas of (i) 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 is a leading investment bank in the country with a market share of 12.1 per cent based on the number of IPOs and qualified institutional placements undertaken by it as the book-running lead manager in FY24, according to a Crisil report. 

Nuvama Wealth Management is the sole merchant banker for the issue. The equity shares of the company are expected to be listed on December 27 on the BSE and the NSE.