DAM Capital Advisors IPO listing today on BSE and NSE: strong debut expected; should you buy, sell or hold?

Analysts expect significant premium over the issue price after DAM Capital raised Rs 840 crore in its IPO.

DAM Capital Advisors shares are set to debut on the NSE and BSE today at 10 am, with the market anticipating robust listing gains after its IPO was subscribed nearly 82 times. While analysts expect significant premium over the issue price, they suggest a mixed approach for investors based on their risk appetite and investment horizon.

Investment banker Dharmesh Mehta-led DAM Capital Advisors raised Rs 840 crore through its IPO, which closed on December 23, garnering massive interest from qualified institutional buyers and non-institutional investors. The issue, priced at Rs 273-283 per share, was entirely an offer-for-sale by existing shareholders, including the promoter and four major investors.

DAM Capital Advisors listing expectations: Long term wealth creator

Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares, sees DAM Capital as a long-term wealth creator, citing its market leadership and strategic growth plans. "At the upper price band, the issue is valued at a PE of 22.8x based on FY25 annualised earnings, which is fully priced. Investors should consider booking partial profits on listing gains but hold for long-term growth," he said.

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Prashanth Tapse, Senior Vice President of Research at Mehta Equities, expects listing gains of up to 60 percent over the IPO price. "Conservative investors may book profits if the stock exceeds expectations. For long-term investors, the stock remains a hold, as DAM Capital’s strong market presence and ability to navigate market volatility are key strengths," he added.

Abhishek Pandya, Research Analyst at StoxBox, said the company’s robust financial performance and industry tailwinds are the reasons to hold for the medium to long term. "With a 12.1 percent market share in FY24 IPOs and QIPs, DAM Capital has cemented its position as a leader in the investment banking space," he noted.

DAM Capital financial performance and growth outlook

DAM Capital Advisors reported an EBITDA CAGR of 73.4 percent between FY22 and FY24, with FY24 EBITDA at Rs 1,030.2 million. Its total income grew at a 38.8 percent CAGR over the same period, reflecting its operational efficiency and growth trajectory. The company’s focus on expanding fee-based businesses and forming global partnerships further positions it for sustained growth.

Analysts suggest mixed approach for IPO investors post listing

While analysts remain optimistic about DAM Capital's long-term potential, they recommend that investors tailor their strategy based on market conditions. Conservative investors may consider booking profits if the stock sees strong listing gains, while long-term investors are advised to hold shares to benefit from the company’s growth and strong market position. Non-allottees, on the other hand, could look to accumulate shares on post-listing dips, especially if profit-booking attempts create buying opportunities.

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