DAM Capital Advisors makes strong market debut: Is it a long-term bet?

DAM Capital Advisors shares marked an impressive stock market debut on Friday, December 27, opening at Rs 393 on the NSE, reflecting a premium of 38.87% over the issue price of Rs 283 per share.

On the BSE, the shares began trading at Rs 392.90, showcasing a 38.83% premium. The listing matched market predictions, as analysts and the grey market premium (GMP) had anticipated a 40%-50% premium, driven by robust demand and positive sentiment.

The DAM Capital Advisors IPO received an overwhelming subscription, closing at 81.88 times oversubscription by December 23. The public issue, valued at Rs 840.25 crore, was entirely an Offer for Sale (OFS) of 2.97 crore shares, ensuring no direct capital inflow for the company.

The IPO price band ranged between Rs 269 and Rs 283 per share, with a minimum lot size of 53 shares, requiring a minimum investment of ₹14,999 from retail investors.

The allotment of shares was finalised on December 24, and investors could check their allotment status via the BSE website or registrar Link Intime India Pvt Ltd. Nuvama Wealth Management Ltd acted as the book-running lead manager for the IPO.

IS IT A LONG-TERM BET?

Analysts have shared mixed perspectives on the stock's long-term potential.

Prashanth Tapse, Senior VP (Research) at Mehta Equities, noted the healthy listing gains were driven by reasonable valuations and strong market sentiment. He advised conservative investors to book profits above expectations, while long-term investors willing to embrace volatility could hold their shares.

He highlighted DAM Capital's 12.1% market share in IPOs and QIPs in FY24 as a sign of its strong market positioning.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, highlighted the company's strong growth in investment banking services, including equity capital markets, mergers and acquisitions, and private equity advisory. While she acknowledged the IPO’s fully priced valuation, Nyati recommended investors book partial profits while maintaining a stop loss at Rs 390.

With its solid debut, DAM Capital Advisors has positioned itself as a key player in India's equity markets. However, investors are advised to closely monitor the company's performance and broader market trends before making long-term decisions.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)