About Company

• DAM Capital, originally incorporated on 7th May, 1993, is one of the leading investment banks in India with a market share of 12.1% based on the number of initial public offerings and qualified institutional placements undertaken by them as the book running lead manager in Fiscal 2024. 

• They provide a wide range of financial solutions in areas of:

• Merchant 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.

• DAM Capital is majorly into two areas and its Merchant Banking segment contributed to 67.2% of its total income, which is the highest among the peers, the rest being contributed by stock broking segment (28.3%) and other income (4.5%).

• From the date of the Acquisition i.e., November 7, 2019 till October 31, 2024, DAM Capital has successfully executed 72 ECM transactions comprising 27 initial public offerings (“IPOs”), 16 qualified institutions placements (“QIPs”), 6 offer for sale (“OFS”), 6 preferential issues, 4 rights issues (“Rights Issues”), 8 buybacks (“Buybacks”), 4 open offers (“Open Offers”) and 1 initial public offer of units by a real estate investment trust (“REIT”).

• They have also advised on 23 advisory transactions including M&A advisory, private equity advisory and structured finance advisory and have also executed block trades since the Acquisition till October 31, 2024. The Institutional Equities business, as of October 31, 2024, comprises 29 employees in research and 34 employees in their broking team. They service 263 active clients including registered FPIs spread across geographies such as India, USA, UK, Europe, Hong Kong, Singapore, Australia, Taiwan, South Korea, Middle East and South Africa.

• DAM Capital reported the highest growth in total income at a CAGR of 38.8% between FY22 and FY24. In FY24, DAM Capital had the highest fees and commission income as a percentage of total income of 95.5% among the peers considered. DAM Capital had the highest growth in EBITDA (CAGR 73.4% between FY22 and FY24) and the highest growth in PAT (CAGR of 79.4% between FY22 and FY24). DAM Capital reported a PAT of Rs 70.52 crore registering a year-on-year growth of 712.8% in FY24.

• DAM Capital recorded the highest profit margin of 38.7% in FY24. DAM Capital reported the highest return on equity of 54.7% in FY24. DAM Capital had the highest revenue per employee in FY24 of Rs 1.64 crore. DAM Capital recorded the highest profit margin of 38.7% in FY24.

Strengths

Competitive Strength

• Fastest-growing investment bank in India;

• Proven execution with in-depth understanding of sectors and products;

• Institutional equities platform with comprehensive research and execution capabilities;

• Extensive coverage of corporates, financial sponsors and institutional investors, with repeat business;

• Experienced management and professionals, backed by a majority independent board;

• Strong track record of revenue growth and profitability.

Business Strategies

• Strengthen the competitive position in existing lines of business;

• Enhance the Merchant Banking platform;

• Further strengthen the institutional equities platform;

• Build other complementary fee-based businesses;

• Explore potential strategic tie-up with a global investment bank for cross-border transactions;

• Strengthen the talent pool by adding highly qualified and motivated professionals.

Company Promoters

Company Financials

DAM Capital Advisors Limited's revenue increased by 114% and profit after tax (PAT) rose by 713% between the financial year ending with March 31, 2024 and March 31, 2023.

Objects of the Issue

The company will not receive any proceeds of the Offer for Sale by the Selling Shareholders.