DAM Capital Advisors Secures SEBI Nod for IPO with ₹3,200 Cr OFS

Investment bank DAM Capital Advisors has obtained approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO), as indicated in a regulatory update on Tuesday.

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The IPO will consist entirely of an offer-for-sale (OFS) involving 32 million equity shares, with no component of newly issued shares, as stated in the draft red herring prospectus (DRHP).

The shareholders participating in the OFS include promoter Dharmesh Anil Mehta, along with investors Multiples Alternate Asset Management, RBL Bank, Easyaccess Financial Services, and Narotam Satyanarayan Sekhsaria.

Since the offering is purely an OFS, all proceeds from the IPO will go to the selling shareholders, with none directed to the company itself.

DAM Capital Advisors had filed its initial draft documents with SEBI in September and received regulatory clearance on December 4, the update confirmed.

In SEBI’s terminology, obtaining observations signifies approval to move forward with the IPO.

According to the draft prospectus, the company aims to list its equity shares on stock exchanges to reap the benefits of listing and to enable the selling shareholders to divest their holdings through the OFS.

DAM Capital Advisors specializes in various financial services, including investment banking activities like equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), structured finance advisory, and institutional equities such as broking and research.

Under the leadership of Dharmesh Mehta, DAM Capital Advisors has become India’s fastest-growing investment bank, with a compound annual growth rate (CAGR) of 38.77% between fiscal years 2022 and 2024. The firm is also a prominent player in India’s investment banking sector, boasting a 12.1% market share based on the number of IPOs and qualified institutional placements it managed as a book-running lead manager in fiscal 2024, as per a CRISIL report.

Nuvama Wealth Management is the sole merchant banker managing the IPO.

In contrast, SEBI has returned the draft IPO papers submitted by M&B Engineering on December 5. The company had filed its draft documents in September, according to the update.