DAM Capital Advisors announced the price band of its upcoming public issue at Rs 269-283 per share. The IPO will open for subscription on December 19 and close on December 23 . This is the first pure play investment banking firm to be listed. The total issue size is around Rs 840 crore.
On the decision to launch the IPO at this time, Dharmesh Mehta, managing director and CEO, DAM Capital told Moneycontrol on December 16 that it was not about the right time but more about attracting talent. "There's never a right time, so you have to always go whenever markets are good. For us, it’s about attracting talent. Our business is purely driven by talent, and talent comes when you have the right ESOP policy in place," he explained.
He also highlighted that the IPO gives new investors to be part of the growth story early on rather than at the tail end.
About concerns over market oversaturation, he said he was optimistic. "Eventually, investors buy companies. It’s not about how many IPOs are out there but about the quality of the companies. Investors will only put their money into good businesses."
On their businesses, Mehta noted that M&A and ECM continue to be a larger part of the business.
Mehta added that market downturns present challenges but also opportunities. "When markets go down, valuations drop but deals still happen. There’s always a hedge in M&A when markets are bad. We’re not dependent solely on IPOs."
Going ahead, the management will be looking to build global partnerships for their M&A strategy, he said. "Many of our clients are acquiring companies globally. A strategic partner can help us facilitate those deals."
They also plan to eventually enter the PMS, AIF business but currently do not have a plan or timeline for the same, said Mehta.
Overall, Mehta remains confident in India's growth story. "India's growth story remains strong. While there could be some volatility, the absence of leverage and scams in the system today makes it stable. Balance sheets are the healthiest I've seen in 30 years."
On their competitiveness in investment banking, Mehta added that investor returns is of utmost importance. "Deal ownership and commitment are critical. If my investors don’t make a return, it’s over. You have to think from the investor’s perspective."
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