DAM Capital Advisor IPO

DAM Capital has completed 67 equity capital market (ECM) transactions, including 26 initial public offerings (IPOs), 15 qualified institutions placements (QIPs), 5 offers-for-sale (OFS), 6 preferential issues, 3 rights issues, 7 buybacks, 4 open offers, and 1 IPO of units by a real estate investment trust (REIT).

The firm has provided advisory services for 20 transactions, including M&A, private equity (PE), and structured finance, along with executing block trades.

The company’s institutional equities business serves 257 active clients, including registered foreign portfolio investors (FPIs) from diverse regions such as India, the USA, the UK, Europe, Hong Kong, Singapore, Australia, Taiwan, South Korea, the Middle East, and South Africa.

DAM Capital claims to have strong relationships with institutional investors, financial sponsors, corporates, and family offices. The company believes that this is because of the experienced team members, and consistent client engagement, which has led to repeat business from many clients.

The company operates in a highly regulated environment. Therefore, any adverse changes in laws, regulations, and government policies could negatively impact its business operations and finances.

The company’s success relies on the leadership of its promoter and Managing Director, Dharmesh Anil Mehta, along with its directors and key managerial personnel. If any of these leaders decide to part ways with the company or the company fails to retain them, the operations and the business performance could be adversely affected.

The company relies heavily on its IT systems to efficiently record and process large volumes of transactions daily. Any failure or inadequacy in these systems could disrupt operations and negatively affect the client experience, impacting overall business performance.

A significant portion of the company's revenue is derived from advisory fee income and brokerage services. Advisory fees contributed Rs 124.36 crore (68.33%), Rs 52.29 crore (61.49%), and Rs 61.11 crore (64.67%) to the revenue from operations in FY24, FY23, and FY22, respectively, while brokerage contributed Rs 49.47 crore (27.18%), Rs 29.15 crore (34.28%) and Rs 30.24 crore (32.00%) to the revenue from operations in FY24, FY23 and FY22, respectively. These revenue streams are susceptible to macroeconomic conditions. Any adverse developments in the macroeconomic conditions could adversely impact the two revenue streams, which could be detrimental to the company’s operations and financial performance.

The company faced losses in its stock broking business, amounting to Rs 14.78 crore in FY23 and Rs 11.66 crore in FY22. Further declines in brokerage income could adversely impact the company's financial health and operational results.

The company and its directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.

As of March 31, 2024, the company’s total outstanding borrowings stood at Rs 77.77 crore. Any inability to repay or service these loans could adversely affect the company’s financial position.