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Background

The company commenced their operations in the securities market in 1993 as S.S. Kantilal Ishwarlal Sharebrokers and Investors Private Limited. In 1994, they rebranded and operated under the name S.S. Kantilal Ishwarlal Securities Private Limited (“SSKIPL”). In 2006, Infrastructure Development Finance Company (“IDFC”) commenced the acquisition of SSKIPL which culminated in 2008. In 2019, IDFC group divested its entire stake, which was acquired by Dharmesh Anil Mehta and other investors. Subsequently, company is currently operating in investment banking and institutional equity broking. In July 2020, the company name was changed to DAM Capital Advisors Limited. , the Company has achieved rapid growth with the total income CAGR of 38.77% and PAT CAGR of 79.46% between FY22-FY24.

Details of the Issue:

The public issue consists of Offer For Sale aggregating up to Rs 840 Cr

Investment Rationale:

* Fastest-growing merchant bank in India

* Proven execution with in-depth understanding of sectors and products

* Institutional equities platform with comprehensive research and execution capabilities

* Experienced management and professionals, backed by a majority independent board

* Extensive coverage of corporates, financial sponsors and institutional investors, with repeat business

Valuation and Recommendation:- Dam Capital Ltd. is a rapidly growing merchant bank in India, with a revenue CAGR of 39% from FY22 to FY24 and the highest profit margin in FY24. Based on the peer comparison Dam Capital, stands out among its peers with exceptional growth and profitability. It has achieved a superior ROE of 43.4%, higher than the peer average of 24.1%. Its EBITDA margin of 59.1% is above the peer average of 50.3%, reflecting operational efficiency. Its PE Multiple is at 28.4x slightly higher than its peers. Given its strong fundamentals and focus on high-margin investment banking we recommend to subscribe to the issue.

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SEBI Registration number is INH0000017660