DAM Capital to file for IPO shortly, India's first ever by a pure play boutique i-bank

DAM Capital to file for IPO shortly, India's first ever by a pure play boutique i-bank

Veteran dealmaker Dharmesh Mehta-led DAM Capital Advisors Ltd, which has managed initial public offerings of 25 companies, is set to file draft share sale papers with the markets regulator shortly for its own IPO, three people in the know told Moneycontrol on the condition of anonymity.

If the plans fructify, the IPO would be India’s first mainboard listing by a pure-play boutique investment bank.

"The draft red herring prospectus is likely to be filed soon, maybe as early as next week. The deal will be a pure OFS (offer for sale), and DAM Capital is looking to raise between Rs 800 crore to Rs 1,200 crore, depending on valuations," the first person said.

According to a second person familiar with the proposed listing, "This is a buzzing market for new kinds of issuers and the IPO will facilitate partial or full exit for the multiple strategic financial investors of DAM Capital."

"Nuvama Wealth Management is the sole book-running lead manager on the DAM Capital IPO. The firm has cash on its books and will explore entry into other areas like wealth management going ahead," a third person added.

When contacted, DAM Capital declined to comment. Nuvama Wealth Management was unavailable for an immediate response.

The Economic Times first reported the listing plans of DAM Capital in its edition dated July 8, 2024.

From i-banking to listing!

DAM Capital was set up by MD & CEO Dharmesh Mehta in November 2019 and is currently present in investment banking (equity capital markets, M&A, financial sponsors group, corporate finance and structured finance), which is the mainstay vertical and institutional equities. Mehta was earlier the MD & CEO at Axis Capital and has more than three decades of experience in the Indian capital markets.

DAM Capital was incorporated as SS Kantilal Ishwarlal (SSKI) in 1992 and became part of the IDFC Group in 2006, according to the firm's website. In 2019, the ownership and management changed to Mehta and a clutch of investors.

The firm has advised on the IPOs of JSW Infra, IRFC, Mazagon Dock Shipbuilders, Kaynes Technology India, Le Travenues Technology (Ixigo), CE Info Systems (MapMyIndia) and Metro Brands. Additionally, it has acted on the QIPs of DMart, Sterling Wilson & Solar, Ujjivan SFB, Wockhardt and Shilpa Medicare.

When it comes to M&A, the firm acted on the Rs 5,650-crore Nirma-Glenmark Lifesciences buyout and the stake sale in SP Group's Sterling & Wilson Solar to Reliance Industries.

According to its website, it also has an overseas wholly owned subsidiary DAM Capital (USA), Inc which is registered with the Financial Industry Regulatory Authority in the US as a foreign broker dealer.

To be sure, when ICICI Securities went public in April 2018, it offered a broad range of financial services beyond investment banking.