DAM Capital Advisors files draft papers to raise funds via IPO, RBL Bank to exit

Investment banker DAM Capital Advisors IPO

Investment banker DAM Capital Advisors has filed preliminary papers with capital market regulator SEBI on September 3, to raise funds via initial public offering. The IPO comprises solely an offer-for-sale (OFS) of 3.2 crore equity shares, with no fresh issue component.

Four investors, namely, Multiples Alternate Asset Management, Narotam Satyanarayan Sekhsaria, RBL Bank, and Easyaccess Financial Services, and promoter Dharmesh Anil Mehta will be selling shares in the OFS.

Moneycontrol was the first to report that veteran dealmaker Dharmesh Mehta-led DAM Capital Advisors, which has managed initial public offerings of 26 companies, is set to file draft share sale papers with SEBI shortly for its own IPO.

Multiples Alternate Asset Management will be offloading 88 lakh shares via OFF, Narotam Satyanarayan Sekhsaria 70.68 lakh shares, and Easyaccess Financial Services 51.23 lakh shares, while RBL Bank will be exiting the company by selling its entire shareholding of 68.31 lakh shares.

Promoter Dharmesh Anil Mehta will be selling 42.41 lakh shares in the OFS. Mehta, his wife, and their company Boombucket Advisors, hold 45.88 percent stake in the company. And the remaining 54.12 percent shares are owned by above four investors.

Since it is entirely an offer-for-sale issue, all the IPO funds will go to selling shareholders, and the company will not receive any money from the IPO.

DAM Capital claimed to be one of the leading investment banks in India with a market share of 12.1 percent based on the number of initial public offerings and qualified institutional placements undertaken by it as the book running lead manager in fiscal 2024.

The company offers investment banking services (equity capital markets, mergers and acquisitions, private equity), structured finance advisory, and institutional equities (comprising broking and research).

Under veteran investment banker Dharmesh Mehta, the company has executed 67 equity capital markets transactions comprising 26 initial public offerings, 15 qualified institutions placements, five offers-for-sale, and one initial public offer of a real estate investment trust (REIT) by July 2024. It has advised on 20 advisory transactions including M&A advisory, private equity advisory and structured finance advisory.

DAM Capital has recorded total income growth at a CAGR of 38.77 percent during FY22-FY24, to Rs 182 crore, while profit during the same period grew at a CAGR of 79.46 percent to Rs 70.5 crore.

Nuvama Wealth Management is the merchant banker for the issue, while Link Intime India is acting as the registrar.