DAM Capital Shares Tumble Over 50% From Listing High Amid Senior Exits

Post-IPO Reality Check for DAM Capital as Stock Falls and Talent Churn Raises Questions

Shares of DAM Capital Advisors have corrected sharply over the past year, falling more than 50 percent from their listing-day high, even as the merchant banker navigates a phase of senior management churn. The equity capital markets–focused investment bank, which listed in December 2024, has seen several top dealmakers exit within months of its market debut, raising concerns among investors about execution strength in a people-driven business.

DAM Capital’s stock has declined to around ₹212 on the BSE, down from its listing-day high of ₹456.9. The stock is also trading about 25 percent below its IPO price of ₹283, reflecting a combination of market volatility, sector-wide moderation in IPO activity, and investor caution around leadership stability.

Multiple Senior Exits Mark First Year as a Listed Entity

Since its listing 12 months ago, DAM Capital has seen the exit of two managing directors and six executive directors, a notable level of churn for a firm that derives the bulk of its revenue from investment banking.

Senior executives who have left over the past year include managing directors Kamraj Negi and Alok Malpani, along with executive directors Alok Chokani, Sachin Chandiwal, Siddharth Shah, Sharad Dhariwal, Anurag Byas, and Akshay Bhadari.

The exits began shortly after the IPO. Byas and Chandiwal moved on in January and February, followed by Bhadari in April. A cluster of departures occurred in June, while Chokani became the latest senior executive to leave in November.

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Management Plays Down Churn, Calls It Normal for a Growth Market

Promoter Dharmesh Mehta has downplayed concerns around the exits, describing them as part of normal industry churn.

“Churn is normal in a growth market, and we have already hired better and senior talent, as announced earlier. We will be hiring more senior people and have seen good interest to join our platform,” Mehta said.

He added that DAM Capital’s recent performance demonstrates that execution capabilities remain intact. “The fact is DAM Capital delivered nine IPOs and posted its best-ever results last quarter shows the strength of our management and execution team,” Mehta noted.

Stock Price Pressure Reflects Investor Sensitivity to Talent Stability

Market participants point out that investment banking is fundamentally a people-led business, where senior bankers play a crucial role in originating deals and maintaining client relationships. As a result, leadership churn can have a direct bearing on a firm’s ability to win mandates and generate fee income.

The management exits have coincided with weakness in DAM Capital’s share price. However, Mehta declined to comment on the stock’s performance, stating that share prices are not under management control.

As of December 15, DAM Capital’s shares were trading near ₹212.65 on the BSE.

Deal Pipeline and IPO Track Record Offer Some Comfort

Despite the churn, DAM Capital continues to position itself as an active player in India’s IPO market. According to Mehta, the firm is currently mandated for 21 IPOs and continues to add to its pipeline.

The investment bank has been associated with marquee transactions such as JSW Cement, Afcons, JSW Infrastructure, and the Reliance rights issue. Mehta argued that participation in such high-profile deals reflects the firm’s execution strength, especially for a relatively young institution.

Data from the Association of Investment Bankers of India (AIBI) shows DAM Capital has advised on 10 IPOs in 2025 so far. While this trails larger peers such as JM Financial, IIFL Capital and Motilal Oswal, DAM remains competitive within its size bracket.

The largest IPO executed by DAM Capital this year was the ₹3,600-crore JSW Cement issue, followed by Jain Resources at ₹1,250 crore.

Financial Performance Shows Volatility but Strong Q2 Recovery

DAM Capital derives nearly 60 percent of its revenue from investment banking, with equity capital markets—primarily IPOs—forming its core business.

The firm reported a weak Q1 FY26, with revenue falling 33 percent year-on-year to ₹31 crore and profit dropping sharply due to fewer deal launches amid market volatility.

However, performance rebounded strongly in Q2 FY26, with revenue rising 69 percent year-on-year to ₹107 crore, while profit surged 141 percent to ₹52 crore. For the first half of FY26, revenue and profit grew 26 percent and 20 percent, respectively, though at a slower pace compared to FY25.

ESOP Scheme and Talent Strategy Under Investor Lens

The series of exits came despite DAM Capital introducing an Employee Stock Option Scheme (ESOP) in 2024, just ahead of its IPO. The ESOPs carry a strike price of ₹255 per share, which is currently above the prevailing market price.

Mehta defended the compensation structure, saying the firm’s ability to attract senior talent reflects a competitive reward framework. “If the rewards were not attractive, we wouldn’t have been able to hire such senior people,” he said.

Outlook: Execution and Stability Key for Re-rating

DAM Capital’s IPO had valued the company at around ₹2,000 crore, with the issue being a pure offer-for-sale by existing shareholders, including Mehta and private equity investors.

For investors, the road ahead hinges on the firm’s ability to stabilise senior leadership, convert its IPO pipeline into consistent fee income, and navigate cyclical swings in the equity capital markets. While recent financial performance and deal mandates provide some reassurance, sustained execution will be critical for any meaningful recovery in the stock.

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